LG Energy Solution Quarterly Profit Report

SEOUL (Reuters) – South Korean battery firm LG Energy Solution (LGES) reported a 39% drop in quarterly profit on Monday, yet the results exceeded analysts' expectations due to increased demand from some European and North American automakers.

The company, which supplies Tesla (NASDAQ: TSLA), General Motors (NYSE: GM), and Hyundai Motor (OTC: HYMTF), announced an operating profit of 448 billion won ($322.84 million) for the July-September period, aligning with earlier forecasts.

Despite being impacted by a decline in EV demand, this figure was a decrease from the 731 billion won profit reported a year earlier. However, it surpassed the average forecast of 374 billion won according to LSEG SmartEstimate, which favors more consistently accurate analysts.

LGES mentioned that without a tax credit from the U.S. Inflation Reduction Act, the company would have reported an 18 billion won operating loss in the quarter.

Revenue for the quarter also declined by 16%, totaling 6.9 trillion won.

Following the results, LGES shares rose by 0.9%, outperforming the 0.6% increase in the benchmark KOSPI.

($1 = 1,387.6900 won)