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| ▲ This photo, taken March 15, 2023, shows LG Energy Solution Ltd.'s exhibition booth at InterBattery 2023 in southern Seoul. (Yonhap) |
(LEAD) LG Energy Solution-Q1 earnings
(LEAD) LG Energy Solution's Q1 profit more than doubles on strong EV demand, IRA effects
(ATTN: UPDATES with more details; ADDS photo, byline)
By Kim Seung-yeon
SEOUL, April 26 (Yonhap) -- LG Energy Solution Ltd. said Wednesday its first-quarter net profit more than doubled from a year earlier, in line with the earlier earnings forecast, on strong electric vehicles (EV) demand in North America and benefits from a new U.S. law on EV subsidies.
Net profit for the three months ended in March rose to 562 billion won (US$419.6 million) from 226.6 billion won during the same period of last year, South Korea's top battery maker said in a regulatory filing.
Operating income reached 633.2 billion won in the January-March period, compared with 258.9 billion won the previous year. Sales more than doubled to 8.74 trillion won from 4.34 trillion won.
The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 345 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
LGES said the operating profit reflected the 100.3 billion won tax benefits from the IRA.
The IRA gives up to $7,500 in tax credits to EV buyers whose vehicles were assembled in North America and made with minerals mined and processed in the United States or countries or regions that have free trade agreements with Washington.
South Korea's battery sector is cited among those expected to benefit from the IRA.
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