LG Energy Solution posts record quarterly revenue, shares rise around 6% [Stock NOW]

[Financial News] LG Energy Solution shares are up around 6% in early trading amid strong earnings.
According to the Korea Exchange, as of 9:45 a.m. on the 8th, LG Energy Solution was trading at 415,500 won, up 6.27% from the previous trading day.
LG Energy Solution announced today that its third-quarter operating profit on a consolidated basis rose 25.7% year over year to 756 billion won. It was up 567.3% from the previous quarter. Revenue reached 9.6434 trillion won, up 59.0% year over year and 27.6% quarter over quarter, marking a quarterly record.
The company is expected to post operating profit in the 300-billion-won range even excluding U.S. tax credits. The estimated Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) is 416.9 billion won. Excluding this, operating profit was 339.1 billion won, turning a 127.7 billion won loss in the second quarter into a profit.
Analysts attribute the results to factors including increased ESS production in North America. Higher shipments of pouch batteries for mid- to low-priced EVs destined for Europe, improved utilization rates, and compensation from some EV customers also contributed to the increase in operating profit.
In its EV battery business, sales were supported by mid-nickel products for Europe and cylindrical battery supplies to major customers. The restart of the GM joint venture plant in North America and the start of operations at the Hyundai Motor joint venture plant also helped drive revenue growth.
Shinhan Securities analyst Lee Jin-myeong said, "In the short term, ESS and cylindrical batteries are supporting earnings, while over the medium to long term, the structure is one in which North American ESS expansion and the 46-series cylindrical battery will drive growth."

[email protected] Han Young-jun Reporter