LG’s preliminary results for the first quarter showed that operating profit was 1.1 trillion won (approximately US$1 billion), which exceeded expectations. The 16 analysts surveyed by Thomson Reuters StarMine SmartEstimate expected to average LG’s operating profit for the first quarter 935 billion won. This will be LG's highest quarterly operating profit since the second quarter of 2009.
According to LG, revenue in the first quarter is likely to increase by 3% year-on-year to 15.1 trillion won, which is lower than the 15.4 trillion won expected by analysts.
LG did not disclose details of its performance, but analysts said that strong sales of OLED TVs and high-end household appliances may well offset the weakness of the mobile phone sector. Analysts said that strong sales of OLED TVs and lower cost of low-cost LCD panels have increased LG's The profit of the television department.
'Household appliances and television have always been low growth areas, but LG has performed better in this area,' said John Ko, an analyst at NH Investment Securities.
Analysts said that despite the low level of losses in the previous quarter, due to fierce competition, the LG mobile phone division is expected to face a fourth loss consecutive quarter.
After the release of the first quarter results outlook, LG's share price rose 5.7% on Friday, better than the 0.3% decline in the overall stock price index of the broader market.