After Apple, Samsung, LG sees 80 percent drop in fourth-quarter profit

South Korea’s LG Electronics Inc said on Tuesday its fourth-quarter operating profit likely plummeted 80 percent from the same period a year earlier, falling well below analyst expectations. The world’s second-biggest television set maker behind compatriot Samsung Electronics Co Ltd estimated profit of 75.3 billion won ($67.03 million) for October-December last year. That would compare with the 387 billion won average of 11 analyst estimates in an I/B/E/S Refinitiv poll. Revenue likely fell 7 percent to 15.8 trillion won, LG said in a regulatory filing, versus analysts’ 16.3 trillion won estimate. [caption id=“attachment_5028721” align=“alignnone” width=“1280”] A logo of LG is seen at the Mobile World Congress in Barcelona. Image: Reuters[/caption] LG did not disclose further details of fourth-quarter operations and will announce full results at the end of January. (Also read:  LG unveils rollable 65-inch OLED TV at CES 2019 which scrolls down to disappear ) Analysts said likely causes included profit margins for its high-end TVs being thinned by increasing competition, while the firm’s smartphone business continues to lose money. “It’s a surprise,” said analyst Lee Jae-yun at Yuanta Securities. “Home appliance sales were worse in emerging markets and China, while its high-end TV business isn’t making profit as much as before.” Analysts also said earnings were likely squeezed by higher year-end bonuses and marketing expenses for new handsets. LG held a 3 percent share of the global smartphone market in the second quarter of last year, showed latest data from market tracker Counterpoint Research. Earlier in the day, Samsung estimated a 29 percent drop in quarterly profit, its first decline in two years, as it flagged tough memory chip and mobile phone markets.