LG Energy Solution Sees Profit Decline Despite Stronger Demand
South Korean battery manufacturer LG Energy Solution (LGES) reported a 39% decrease in quarterly profits on Monday. Despite this decline, the results surpassed analysts' expectations, driven by improved demand from European and North American automakers.
In the July-September period, LGES achieved an operating profit of 448 billion won (approximately $322.84 million), aligning with earlier forecasts. This profit marked a significant drop from 731 billion won a year earlier, reflecting a challenging market influenced by reduced demand for electric vehicles (EVs). However, it exceeded the average forecast of 374 billion won from LSEG SmartEstimate, which favors more consistently accurate analysts.
The company disclosed that it would have incurred an operating loss of 18 billion won without a tax credit received under the U.S. Inflation Reduction Act, as indicated in a recent regulatory filing. Revenue for the quarter fell by 16%, totaling 6.9 trillion won.
Following the announcement, shares of LGES rose by 0.9%, outperforming a 0.6% increase in the benchmark KOSPI index, reflecting investor optimism despite the profit slump.
As LGES navigates the challenges in the EV market, its ability to adapt to shifting demands and leverage governmental incentives remains crucial for future growth.


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