Investing.com -- LG Electronics has forecast that its quarterly operating profit will nearly halve compared to the same period last year, falling short of market expectations and causing its shares to drop sharply on Monday.

The South Korean consumer-electronics company projected its operating profit for the April-June period could decrease by 47% to 639.10 billion won ($469.1 million).

This figure is significantly below the 901.07 billion won that analysts had expected, according to a FactSet-compiled consensus estimate.

LG also predicted its revenue would fall by 4.4% to 20.740 trillion won in the second quarter, which is a larger decline than analysts had anticipated.

The company attributed the disappointing performance to higher U.S. tariffs and intensified market competition.

"The slowdown reflects continued weakness in consumer sentiment across major markets and an increasingly challenging external environment," LG said in a statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.