LG Energy Solution flags 26% rise in Q3 operating profit
Battery cells with the logo of LG Energy Solution are displayed at the company headquarters in Seoul, South Korea, April 23, 2024. REUTERS/Kim Hong-Ji
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
SEOUL, Oct 8 : South Korean battery maker LG Energy Solution said on Thursday the company expects its July-September operating profit to rise 25.7 per cent to 756 billion won ($564.09 million).
That compared with an LSEG SmartEstimate forecast for an operating profit of 309 billion won, which is weighted toward analysts who are more consistently accurate.
Here are some details:
• LGES, which supplies Tesla, General Motors and Hyundai Motor among others, has been grappling with a prolonged slowdown in EV demand.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
• Revenue likely rose 59 per cent to 9.6 trillion won from a year earlier, according to LGES’ regulatory filing.
• The quarterly earnings guidance includes tax credits provided under the US Inflation Reduction Act for the company’s battery production in the United States, LGES said in a statement. Excluding those credits, the company would have posted an operating profit of 339.1 billion won.
• Analysts attributed the better-than-expected operating profit to a one-off gain from a North American automaker, which paid compensation for falling short of minimum purchase commitments amid weak EV demand.
• To offset weakness in the EV market, LGES has been expanding its energy storage system (ESS) business, where demand is being supported by rising electricity needs from artificial intelligence data centres.
• Analysts said AI-driven data centre demand for ESS is emerging as a growth driver for battery makers. However, they cautioned that LGES’ ESS business remains loss-making and that the timing of a turnaround has been pushed back.
• LGES said it plans to announce detailed quarterly results on November 3.
($1 = 1,340.2200 won)
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
