SEOUL, OCT 9 – South Korean technology giant LG Electronics posted a double-digit decline in operating profit in the third quarter due to higher logistics and marketing costs, the company said yesterday, reports Xinhua.
Preliminary operating profit fell 20.9 percent from a year earlier to US$556.8 million in the July-September period, lower than market expectations of around US$719.1 million.
The double-digit reduction was due to increased marketing expenses and an increase in sea freight rates.
Initial revenue rose 10.7 percent to US$16.4 billion in the same quarter, continuing growth for four consecutive quarters.
The increase in earnings was attributed to the company’s efforts to upgrade its business portfolio through changes in the business model and the strengthening of business-to-business operations.
Net income and details for each business unit will be announced later this month. – Named
