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.

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.