A headquarters of LG Twin Tower in Yeongdeungpo District, Seoul / Korea Times file

LG Electronics on Tuesday estimated its third-quarter operating profit sank 20.9 percent from a year earlier, missing market expectations, due to increased logistics and marketing costs.

Its operating profit came to 751.1 billion won ($556.9 million) for the July-September period, down from 905.1 billion won from a year ago, the company said in a regulatory filing.

Sales increased 10.7 percent to 22.17 trillion won. The company did not provide the data for net income. The quarterly sales marked the largest amount for any third-quarter results.

The operating profit was 22.5 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

LG Electronics said the weak bottom line is attributable to a hike in maritime transportation fees and marketing costs amid intensifying competition.

But its business-to-business sectors, including electric vehicle components, subscriptions and heating, ventilation and air conditioning (HVAC) businesses, pulled off steady growth in the third quarter.

"While the external environment continues to be challenging, including delayed demand recovery, rising raw material costs, and fluctuations in ocean freight rates, it is meaningful that we are steadily increasing our sales volume," LG Electronics said in a statement.

"Our efforts to modernize our business portfolio are leading to improved fundamental competitiveness, and we are maintaining our growth momentum."

The Korean home appliance giant has made constant efforts to diversify its business portfolio and become a future-oriented company after withdrawing its smartphone business in 2021.

The company will release its final earnings report later.

The price of LG Electronics tumbled 5.5 percent to 98,000 won on the Seoul bourse, underperforming the broader Korea Composite Stock Price Index's 0.6 percent drop. (Yonhap)