LG sees best first quarter for nearly eight years

While South Korean tech juggernaut Samsung’s future may rest on the success of its sparkly new Galaxy S8 smartphone, compatriot LG announced on Friday that its estimated first-quarter operating profit rose 82 per cent to its highest in nearly eight years.

LG is the world’s second largest television maker behind Samsung and it said that its operating profit between January and March was likely 922 billion won ($812.62 million), compared with an average forecast of 518 billion won.

Not wanting to be far behind, Samsung earlier in the day announced that it estimates the first quarter will produce its best quarterly profit in more than three years, reflecting record earnings off a memory chip super-cycle.

Reuters reports that analysts say that it is likely LG’s mobile business failed to make money for the eighth consecutive quarter, with sales of the flagship G6 going on starting in March and only coming in during the second quarter. The outlet also stated that some analysts said losses were smaller in the quarter as LG’s new lower-tier products fared better and the company reduced market spending. 

"Both the home appliances and the TV market will enter a seasonally strong period during the second quarter," HI Investment analyst Song Eun-jeong said. 

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