LG Energy Solutions

 

[Alpha Biz= Reporter Kim Jisun] On the 8th, LG Energy Solution announced its preliminary results for the second quarter of this year, reporting a revenue of 6.162 trillion KRW and an operating profit of 195.3 billion KRW. Compared to the same period last year, revenue decreased by 29.8%, and operating profit decreased by 57.6%. However, compared to the previous quarter, revenue and operating profit increased by 0.5% and 24.2%, respectively.

The main reasons for the decline in revenue include the continued slowdown in electric vehicle demand, which began in earnest late last year, and the decline in sales prices due to the drop in prices of key raw materials such as lithium.

Operating profit also continued to suffer due to low operating rates and the burden of investments and fixed costs. However, it improved significantly compared to the previous quarter, partly due to subsidies under the U.S. Inflation Reduction Act (IRA).

Excluding the Advanced Manufacturing Production Credit (AMPC) of 447.8 billion KRW under the IRA, the company recorded an operating loss of 252.5 billion KRW in the second quarter. The AMPC amount for the second quarter increased by 137% compared to the first quarter (188.9 billion KRW).

The company expects its sluggish performance in the first half of the year to begin to recover significantly in the second half.

 

 

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