LG Electronics forecast a decline in third-quarter operating profit partly due to increased logistics and marketing expenses, disappointing market expectations for profit growth.

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.

LG Electronics on Tuesday estimated its third-quarter operating profit at 751.1 billion won ($556.9 million), down 20.9 percent from a year earlier.