LG Electronics expects first quarterly operating loss in nine years

LG Electronics says it expects a fourth-quarter operating loss of 109.40 billion won, its first quarterly loss since late 2016. The company also expects quarter revenue to rise and will publish full results later this month.

LG Electronics expects a fourth-quarter operating loss of 109.40 billion won, which would be the company's first quarterly loss since the final quarter of 2016. The company reported that weaker display-related demand and intensified competition contributed to higher marketing spending. It also cited one-off restructuring costs and higher tariffs as additional factors. LG said quarterly revenue is nonetheless expected to rise and that it plans to report detailed results later this month. Key points: - LG expects a fourth-quarter operating loss of 109.40 billion won, its first quarterly loss since 2016. - Quarterly revenue is projected to increase about 4.8% to 23.854 trillion won, and full-year revenue is expected to be a record 89.203 trillion won. - The company attributes the operating loss mainly to slower recovery in display-related demand, intensified competition, higher marketing costs, one-off restructuring charges, and tariff pressures. - LG will release its full quarterly results later this month. Summary: LG's preliminary report shows an operating loss for the quarter alongside revenue growth for the period and year. The company links the loss to weaker display demand, competitive pressures, restructuring costs and tariffs. Detailed financial results will be released later this month. Undetermined at this time.