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Investing.com -- LG Electronics has forecasted a 5.7% decrease in its operating profit for the first quarter of the year. Despite this, the South Korean consumer electronics company has maintained consistent revenue growth.
The preliminary quarterly results were announced as LG Electronics continues to pursue new business growth initiatives.
These initiatives include home-appliance subscription services, as well as heating, ventilation, and air-conditioning services for corporate clients. This is in response to an anticipated global economic slowdown.
On Monday, LG Electronics released a preliminary earnings report. In this report, the company stated that its operating profit for the January-March period could be 1.259 trillion won, equivalent to $862.6 million. This is a decrease from 1.335 trillion won in the same period last year.
The projected earnings align closely with a FactSet-compiled consensus estimate of 1.252 trillion won for the quarter.
LG Electronics also expects a 7.8% increase in revenue to 22.745 trillion won. This slightly surpasses analysts’ estimate for the first quarter of 2025. This is the first time that the company’s first-quarter revenue has exceeded 22 trillion won.
However, shares of LG Electronics experienced a 6.5% drop on Monday. This follows a broad selloff in local stocks amid concerns over new tariffs introduced by Trump.
The full quarterly results from LG Electronics are due to be released later this month.
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