Seoul: LG Energy Solution Ltd., South Korea's leading battery maker, announced on Monday that its third-quarter operating profit likely increased by 34.1 percent compared to the previous year. This notable rise is attributed to strong sales of energy storage systems (ESSs) in the United States.
According to Yonhap News Agency, LG Energy Solution reported that its operating profit for the three-month period ending in September is estimated to have reached 601.3 billion won (approximately US$422.8 million), a significant increase from the 448.3 billion won recorded in the same period last year. A company spokesperson mentioned that the surge in earnings was also supported by higher demand for cylindrical and pouch-type batteries for electric vehicles (EVs).
Despite the growth in operating profit, the company's sales saw a decline of 17.1 percent, falling to 5.69 trillion won from 6.87 trillion won. This drop is attributed to an overall slowdown in EV sales, which affected the company's revenue.
For the January-September period, LG Energy Solution's operating profit likely soared by 83.3 percent, reaching 1.46 trillion won compared to 800.9 billion won a year earlier. However, sales for the nine-month period are estimated to have declined by 8.5 percent to 17.53 trillion won from 19.16 trillion won, reflecting challenges in the broader market.
The company has announced plans to release its final earnings results for the September quarter later this month.