LG Energy Solution (LGES) (KRX: 373220) released its Q3 financial results on October 28, 2024. The company reported consolidated revenues of 6.8778 trillion won (approximately $4.972 billion US), marking a quarter-on-quarter increase of 11.6% but a year-on-year decrease of 16.4%. And the operating profit stood at 448.3 billion won (approximately $324.08 million US), a quarter-on-quarter increase of 129.5%, but down 38.7% year-on-year.
Notably, the operating profit includes an estimated IRA tax credit amount of 466.0 billion won (approximately $336.87 million US). Without considering the IRA tax credit in the US, the company would have reported an operating loss of 17.7 billion won (approximately $12.8 million US) for the quarter.
Chang Sil Lee, CFO of LG Energy Solution, stated that the overall revenue increased due to expanded sales to major European automakers, increased production at joint ventures in North America and Indonesia, as well as a significant rise in revenues from Energy Storage System (ESS) compared to the previous quarter.
“Excluding the IRA tax credit effect, we also saw an improvement in operating profit quarter-on-quarter. This is thanks to increased shipments of electric vehicle and energy storage batteries. The stabilization of battery key metal prices has also alleviated the burden of unit cost,” Lee noted.
Source: LG Energy Solution
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