LG Energy Solution's third-quarter revenue and operating profit rose 59.0% and 25.7%, respectively, from a year earlier. However, net profit swung to a loss of 296.9 billion won.
In a filing on the 3rd, LG Energy Solution said it posted consolidated third-quarter revenue of 9.6434 trillion won and operating profit of 756.0 billion won. Compared with the previous quarter, revenue rose 27.6% and operating profit rose 567.3%.
Operating profit includes 416.9 billion won in North American production subsidies, including the Advanced Manufacturing Production Credit (AMPC) under the US Inflation Reduction Act (IRA). Excluding the subsidies, operating profit was 339.1 billion won and the operating margin was 3.7%, meaning it was profitable even without the subsidies.
Pretax and after-tax results were weak. Loss from continuing operations before income tax was 231.2 billion won, swinging from a profit of 552.8 billion won a year earlier. Net profit was also 536.1 billion won in the black in the third quarter last year but this time recorded a loss of 296.9 billion won.
Cumulative revenue for the first three quarters was 23.7586 trillion won, up 26.1% from a year earlier. Cumulative operating profit for the same period fell 54.9% to 661.6 billion won, and the cumulative net loss reached 1.5696 trillion won.
The company plans to hold a conference call at 10 a.m. the same day to explain third-quarter results by business and its management strategy going forward.