LG Energy Reports 34% Surge in Q3 Net Profit Amid One-Off Gains

SEOUL: LG Energy Solution Ltd., a leading battery manufacturer in South Korea, announced a significant increase in its third-quarter net profit, which rose by 34 percent compared to the same period last year, driven by unspecified one-off gains. According to Yonhap News Agency, the company's net profit for the July to September quarter increased to 561.3 billion won (approximately US$404 million) from 420.5 billion won in the previous year. Despite the notable rise in net profit, LG Energy did not disclose the specifics of the one-off gains that contributed to this increase. However, the company reported a substantial decline in its operating profit, which fell by 39 percent to 448.3 billion won from 731.2 billion won, attributed to a slowdown in electric vehicle sales. Concurrently, sales decreased by 16 percent, reaching 6.87 trillion won, down from 8.22 trillion won in the same period last year. On a quarterly basis, LG Energy successfully transitioned from a net loss of 23.7 billion won in the previous quarter, with operating profit more than doubling from 195.3 billion won. Sales also rose by 12 percent from 6.16 trillion won in the April-June period. The company attributed the quarterly profit gains to increased sales of batteries for energy storage systems in advanced markets and companywide cost reduction measures. For the first nine months of the year, the company experienced a 48 percent drop in net income to 749.6 billion won, compared to 14.47 trillion won in the same period last year. Operating profit also saw a significant decrease, plummeting 56 percent to 800.9 billion won from 18.25 trillion won, with sales down 26 percent to 19.17 trillion won from 25.74 trillion won year-on-year.