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LG Energy Solution logs 38.7% fall in operating profit in Q3 on slowing EV sales

Published: 28 Oct. 2024, 15:35 Updated: 28 Oct. 2024, 16:49

CHO YONG-JUN
[email protected]

LG Energy Solution's battery manufacturing plant in Poland [LG ENERGY SOLUTION]

LG Energy Solution recorded a 38.7 percent drop in operating profit in the third quarter due to the slowdown in EV sales.

Operating profit came in at 448.3 billion won ($323.6 million), down from the 731.2 billion won recorded in the cited period a year ago.

The figure, however, exceeded analysts' expectation of 329.2 billion won compiled by Yonhap Infomax.

Revenue for the July-September period also fell 16 percent to 6.87 trillion won from 8.22 trillion won a year ago.

The battery maker’s net profit surged 33.5 percent from a year earlier to 561.3 billion won.

On-quarter, LG Energy shifted from a net loss of 23.7 billion won, with operating profit more than doubling from 195.3 billion won. Sales rose 12 percent from 6.16 trillion won in the April-June period.

"Increased sales of batteries for energy storage systems in advanced markets and company-wide cost reductions resulted in quarterly profit gains," the company said in a statement.

From January to September, net income fell 48 percent to 749.6 billion won from 14.47 trillion won on year.

Operating profit plummeted 56 percent to 800.9 billion won in the first nine months of the year from 18.25 trillion won a year ago. Sales were down 26 percent to 19.17 trillion won from 25.74 trillion won.

BY CHO YONG-JUN [[email protected]]