Seoul: LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, announced a significant turnaround in its financial performance for the second quarter, citing increased sales of battery products in the United States as a key driver.
According to Yonhap News Agency, LGES reported a net profit of 90.6 billion won (US$66 million) for the three months ending in June, marking a stark contrast to a net loss of 23.7 billion won in the same period last year. The company highlighted that the boost in quarterly earnings was attributed to the increased shipments of battery products to major U.S. clients such as Hyundai Motor, Kia, and General Motors Co., alongside effective cost-cutting measures.
The company's operating profit saw a significant rise, more than doubling to 492.2 billion won from 195.3 billion won a year earlier. Despite the positive profit figures, sales experienced a decline, falling 9.7 percent to 5.56 trillion won from 6.16 trillion won over the same period.
For the first half of the year, LGES recorded a 68.5 percent surge in net income, reaching 317.2 billion won from 188.3 billion won a year earlier. The operating profit also more than doubled, climbing to 866.8 billion won from 352.7 billion won, although sales saw a slight decrease of 3.7 percent to 11.8 trillion won from 12.2 trillion won.