LG Electronics expects to post an operating profit of 366.8 billion won ($343.18 million) over the final quarter of 2017, the company said as part of its preliminary financial report published Monday. While the figure is a sequential decline compared to over $450 million recorded in the three-month period ending September 30th, it represents a substantial annual improvement, a much more important metric for investors. With LG posting a $33 million loss at this time last year, the company was now quick to signal it's set to return to the black, having apparently ended 2017 on a high note. The Seoul-based tech giant's initial report didn't break down its expected profits per individual units, though its Home Entertainment Company is still believed to be carrying the firm, having accounted for over 90 percent of its income in the previous quarter.
Likewise, the mobile division of LG is once again expected to post a loss, albeit one that should be lower than the equivalent of $331 million recorded over the third quarter of 2017, largely due to the holiday period and numerous promotions that presumably managed to somewhat boost its smartphone sales. The South Korean original equipment manufacturer projected a yearly sales increase of nearly 15 percentage points across all divisions and expects to post approximately $15.8 billion in that revenue category for Q4 2017. While a return to the black compared to last year is the most highly emphasized point of the preliminary report, the fact that LG is once again expecting to have a weaker Q4 than Q3 remains curious and may be indicative of the company's need to establish an even larger presence in the West where the holiday period is traditionally by far the most lucrative time of the year for consumer electronics manufacturers and rarely associated with sequential declines.
The tech giant will post its consolidated financial report for Q4 2017 later this month when it's also expected to provide a detailed breakdown of the performance of its individual businesses. Despite largely positive reviews, the market reception of the LG V30 doesn't suggest the company's latest Android flagship will help its mobile division return to profit. According to recent reports, LG's next attempt to revitalize its handset unit will be a partial or complete rebranding of the G lineup of premium smartphones, i.e. the rumored LG G7 is likely to be released this spring under a different name.