Battery firm LG Energy Solution Q1 profit plunges on weak EV sales

By Thomson Reuters Apr 24, 2024 | 7:29 PM

By Heekyong Yang and Ju-min Park

SEOUL (Reuters) – South Korean battery firm LG Energy Solution (LGES) posted on Thursday a 75% drop in quarterly profit, hit by weakening demand from electric vehicle (EV) sales.

The company, which supplies Tesla, General Motors and Volkswagen among other automakers, reported an operating profit of 157 billion won ($114.14 million) for the January-March period, versus a 633 billion won profit a year earlier.

The company would have made a 32 billion won operating loss without a tax credit it received under the U.S. Inflation Reduction Act, LGES said in a regulatory filing.

Revenue for the quarter fell 30% to 6.1 trillion won.

The result comes after its major customer Tesla reported a decline in quarterly sales and said it would accelerate the roll-out of more affordable EVs.

Shares of LGES were trading down 1.8%, versus the benchmark KOSPI’s 1.2% fall as of 0024 GMT.

($1 = 1,375.4800 won)

(Reporting by Heekyong Yang and Joyce Lee; Editing by Jacqueline Wong and Christopher Cushing)