Korean electronics giants LG and Samsung both revealed their preliminary earning guidance for the first quarter of 2020, and the spreading coronavirus pandemic did not seem to impact much on their business.
LG Electronics reported tentative consolidated revenues of USD $12.03bn and with an operating profit of $800m for 1Q20. Compared to 1Q19, the sales were about 1% lower but the operating income increased by 21%.
Meanwhile, Samsung Electronics posted their 1Q20 earnings guidance with consolidated sales of
$45bn and a consolidated operating profit of $5.25bn. In comparison with the same period last year, the sales grew by 5% and operational profit increased by 2.7%.
Both companies announced they are cutting LCD production to focus on OLED and Micro LED display technology. LG will end domestic LCD production, while Samsung will terminate all LCD production by the end of this year. Despite both makers’ stable and increased business for the first quarter in 2020, they’ve both closed many facilities and their business in the coming quarters might still be affected by the expected market decline due to COVID-19 pandemic.