LG Electronics expects to plug into global recovery

SEOUL: South Korea's LG Electronics Inc forecast sales and profits would improve in the first quarter as the global economic recovery prompts consumers to spend more on TVs, phones and other electronic appliances.

The world's second-biggest TV brand and No 3 mobile phone maker posted a higher-than-expected operating profit in the fourth quarter yesterday but shares were at an 8-week low, weighed down by quarterly net profits, released a day earlier, that were below expectations.

LG's shares were down 1.8 percent by 0520 GMT, compared with a 0.4 percent loss in the wider market. Expectations for an earnings recovery in the first half limited LG's decline.