It is difficult to improve profitability further in the fourth from the third on weaker sales of batteries with high profits,” an LG Energy official.“We are cautious over the next year due to lots of uncertainties although global automakers plan to launch new EVs.”Operating rates of its battery plants in China and the US, the world’s No.1 and No.3 EV markets, are unlikely to improve further in the fourth quarter as major automakers are set to cut their inventories ahead of year-end, according to the company.
Excluding tax benefits under the US Advanced Manufacturing Production Credit (AMPC) program, LG Energy would have logged an operating loss of 17.7 billion won in the third quarter, far smaller than the shortfall of 252.5 billion won.“We significantly improved profitability compared to the previous quarter as higher shipments of EV and ESS batteries raised overall operating rates and lower metal prices reduced unit costs,” LG Energy Chief Financial Officer Lee Chang Sil said during an earnings call.
LG Energy plans to “significantly” reduce investments in new manufacturing facilities next year, Lee said.“We aim to cut investment losses by reducing new capacity expansion in North America where investments are concentrated and preventing excessive capacities,” said the CFO.“We will optimize asset management and minimize spending on facility investments except for essential ones, in addition to slowing down investments.” EXPANDS CUSTOMER BASE, PRODUCT PORTFOLIOSLG Energy is expanding its customer base and product portfolios to recover earnings in the protracted slowdown in the eco-friendly automobile market.
The story "LG Energy Q3 profit more than doubles on higher sales; shares jump" has 692 words across 21 sentences, which will take approximately 3 - 6 minutes for the average person to read.
Which news outlet covered this story?
The story "LG Energy Q3 profit more than doubles on higher sales; shares jump" was covered 2 hours ago by Korea Economic Daily, a news publisher based in South Korea.
How trustworthy is 'Korea Economic Daily' news outlet?
Korea Economic Daily is a fully independent (privately-owned) news outlet established in 1964 that covers mostly economy news.
The outlet is headquartered in South Korea and publishes an average of 10 news stories per day.
It's most recent story was published 1 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
