South Korea's LG Electronics Inc has cut its annual television sales forecast by 20 percent, a media report said, joining its Japanese rival Sony Corp in bracing for weaker sales due to uncertain global economic prospects.
Global TV makers from top-ranked Samsung Electronics to Sony, LG and Panasonic Corp have already warned of a tough sales outlook, especially in the United States and Europe, as consumers delay purchases amid rising inflation and deepening euro zone fiscal problems.
TV sales are seen sharply below our original target and may come in at around 32 million units this year, as the euro zone fiscal crisis is likely to continue and a U.S. consumption recovery also remains uncertain, online news outlet eDaily quoted an unnamed LG official as saying.
LG said earlier this year it was targeting sales of 40 million units of flat-screen TVs in 2011.
The company said it would not comment on speculation and it is not making any official announcements on revising forecasts.
We are keeping our eye on the economic environment in the United States and much of Europe, which have not recovered as quickly as expected, LG said in a statement.
That said, we have not made any official announcements to date that would alter or change our current situation.
Shares in LG Electronics tumbled for a second day, closing down 6.1 percent amid a broad tech sell-off.
Sony plans to overhaul its TV business this month after cutting its annual TV sales forecast and warning that losses from the unit could widen this year.
The firm cut its sales forecast for LCD TVs to 22 million sets from 27 million.
Dutch consumer electronics giant Philips hived off its loss-making TV unit earlier this year.
(Reporting by Miyoung Kim; Editing by Jonathan Hopfner and Lincoln Feast)