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LG predicts first quarterly operating loss in 6 years
LG has announced its preliminary earnings for Q4 2016, revealing what could be its first quarterly operating loss in six years. LG estimates an operating loss of 35.3 billion Korean Won, the equivalent of around $29.58 million, despite predicting an 11.8 percent quarter-on-quarter increase in revenues.
The holiday season likely helped LG achieve higher sales than in Q3, while marketing expenses and lower earnings in its home appliance business are said to be part of the cause of the decline.
LG’s mobile division has also been struggling since its last flagship, the LG G5, flopped. LG announced its worst ever quarter on quarter loss (though it still maintained an overall operating profit) in Q3 2016, following the G5’s release in April.
LG president and chief technology officer Skott Ahn revealed on Tuesday that the company was not focusing on a modular design for the upcoming LG G6.
A breakdown of the figures by department will arrive with the official Q4 earnings later this month.