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[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Energy Solution recorded 'earning surprise' in the third quarter.
LG Energy Solutions announced on the 11th that its tentative operating profit in the third quarter was 731.2 billion won, up 40.1% from a year earlier. Provisional sales in the third quarter reached 8.2235 trillion won, up 7.5 percent from a year earlier.
Initially, the market predicted that the battery industry's performance in the third quarter would be lower than expected. This is because sales of electric vehicles around the world have slowed down, especially in Europe, and sales prices have fallen due to metal price adjustments. Usually, battery companies link raw material prices to sales prices when they sign contracts with finished car companies.
LG Energy Solutions' sales forecast for the third quarter was about 8.4 trillion won and operating profit was about 690 billion won.
However, LG Energy Solutions' tentative operating profit for the third quarter was about 40 billion won higher than market expectations. Sales alone fell 6.3% QoQ due to lower selling prices.
Stabilization of North American battery plants and increased sales led LG Energy Solutions' third-quarter positive performance.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
