South Korea's LG Energy Solution says Q2 profit likely up 152% on year
FILE PHOTO: 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/File Photo
SEOUL :South Korea's LG Energy Solution (LGES), an electric car battery supplier for General Motors and Tesla, on Monday estimated a 152 per cent rise in its quarterly operating profit.
LGES said its operating profit was likely 492 billion won ($360.94 million) for the April-June period.
That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted toward analysts who are more consistently accurate.
Analysts said LG Energy Solution’s operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential U.S. tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases.
The South Korean battery maker said it expected an operating profit of 1.4 billion won ($1.03 million) in the second quarter excluding tax credits under the U.S. Inflation Reduction Act.
LGES is expected to release detailed results in late July.
($1 = 1,363.1000 won)
