Seoul, April 7 (IANS) Riding on an improved performance of its TV and home appliance businesses, LG Electronics Inc. on Friday said its first-quarter operating profit is estimated at 922 billion won ($812.3 million), a market forecast-beating figure.
Shares of LG Electronics closed at over $62 on the main bourse on Friday, up 0.42 per cent from the previous trading session, Yonhap news agency reported.
The latest figure marks an 82.4 per cent jump from $445.7 million posted in the January-March period of 2016.
LG Electronics’ first-quarter operating profit was estimated at $537 million, up 20.6 per cent from a year earlier.
The company is set to deliver the finalised earnings report later this month.
The operating profit and sales both mark the second-highest quarterly figures ever posted by LG. They also set a new record in terms of first-quarter performances.
Industry watchers said the healthy performance is attributable to the improved profitability of the company’s TV and home appliance businesses, while it also successfully reduced losses from the smartphone business.
LG has been seeking to improve the profitability by focusing on selling premium products.
LG’s high-end home electronics brand, “LG Signature,” has been gaining popularity around the world. Its OLED TV line-up, which took up 10 per cent of its TV sales, is expected to reach 15 per cent this year, adding to its profitability.
While its smartphone business still remains uncertain, the latest G6 smartphone is said to enjoy stronger performance compared to its predecessor, the G5. The G6, however, is expected to have a limited impact on the January-March performance as it was released only last month.