LG Electronics is set to report quarterly earnings more than doubled next thanks to high margins at its mobile phone unit, brisk sales of TVs and solid results at its LCD joint venture, a Reuters report said.
While the outlook for the rest of year is clouded by the deepening global economic slowdown, the South Korean company is still expected to have an outstanding year on the back of a resilient mobile phone division, boosted by a weaker won currency, which makes LG's exports more competitive, the Reuters report said.
LG's 2008 net profit on a parent basis is forecast to more than double to 2.53 trillion won (€1.6 billion, US$2.5 billion) from the previous year, according to 25 analysts polled by Reuters Estimates.
'LG won't be immune to the headwinds of the global slowdown, but should be able to outperform the competition,' Peter Yu, an analyst at BNP Paribas, quoted by the Reuters report, said.
LG's strength in Europe, which is comparatively less affected by the stalling economy than the US, makes it more capable of overcoming the hurdles ahead, analysts say.
'The US economy is definitely a concern, but the impact of the downturn on LG could be smaller than expected,' said Kim Woon-ho, an analyst at Prudential Investment & Securities.
LG is seen posting January-March net profit of 802 billion won (€507 million, US$802 million), more than double the 385 billion won (€243.2 million, US$385 million) posted in the year-ago period, according to ten analysts surveyed by Reuters.