LG Electronics expects third-quarter operating profit to fall 21% compared with the same period a year earlier, disappointing market watchers who had expected earnings to grow marginally.

South Korean tech giant LG Electronics has announced preliminary results for the third quarter, reporting consolidated revenue of 22.17 trillion Korean won ($16.5 billion) and an operating profit of 751.

The operating profit was 22.5 per cent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. LG Electronics said in a statement that the weak bottom line is attributable to a hike in maritime transportation fees and marketing costs amid intensifying competition.