LG Electronics Expects 6.4% Rise in First-Quarter Operating Profit

By Kwanwoo Jun

LG Electronics Inc. expects its first-quarter operating profit to rise 6.4% from a year ago despite challenges from rising raw-material prices.

The South Korean consumer-electronics giant said Thursday that it estimates operating profit at 1.880 trillion won ($1.54 billion) for the quarter ended March, compared with KRW1.767 trillion a year earlier.

LG Electronics' forecast is above a FactSet-compiled market consensus estimate for operating profit of KRW1.374 trillion.

The company expects revenue to jump 19% to KRW21.109 trillion for the quarter.

Analysts said the company is facing headwinds from surging logistics costs and higher prices of raw materials in the wake of the war in Ukraine and global supply bottlenecks.

LG is due to release its full quarterly earnings report later this month.

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

04-07-22 0153ET