LG slips for first time in six years

maxresdefault (3)LG Electronics has predicted it will make its first quarterly operating loss in six years in October-December.

As you might expect the drop is because of continued mobile losses and but appliances sales as weak at that time of year too.

LG is the second-biggest telly maker behind Samsung and it thinks it will suffer a $29.36 million loss for the fourth quarter, its first since a bigger loss in the fourth quarter of 2010.

Most analysts were expecting LG to come up with a profit although some thought a loss was inevitable.

LG said revenue for the quarter likely rose 1.5 percent. The firm did not disclose further details on its earnings and will release full results including performance by individual businesses at the end of January.

The company in October said its fourth-quarter profit would decline from the previous three months due to weaker earnings in its appliances business, its top profit engine this year, as well as higher promotional expenses heading into the year-end holiday shopping season.

Higher liquid crystal display prices heading into the holiday season also likely compressed margins for the TV division and further undercut profit.