Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = On 8th, LG Energy Solutions announced its consolidated financial results for the second quarter of this year, reporting a revenue of KRW 6.162 trillion and an operating profit of KRW 195.3 billion.

Revenue decreased by 29.8% compared to the same period last year, and operating profit also saw a significant drop of 57.6% year-on-year.

The published figures include the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA). Excluding the AMPC, the company recorded a deficit of KRW 252.5 billion. The operating loss for this quarter, excluding AMPC, is estimated to have increased compared to the previous quarter.

Industry analysts attribute the decline in profitability to a temporary slowdown in electric vehicle demand (referred to as an EV chasm) and the impact of falling prices for key metals such as lithium, which affected the pricing strategy.

However, compared to the previous quarter, revenue increased by 24.2% and operating profit rose by 0.5%.

By Eun-young Huh(eunyoung114@nspna.com) and Jeonghwa Choi(choijh@nspna.com)

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