LG Energy Solution Reports Q2 Operating Profit of 460.6 Billion KRW, Up 135% Year-on-Year

Partial GM Recall Burden
Operating Profit Down 27% QoQ

LG Energy Solution Headquarters, Yeoui-daero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

LG Energy Solution announced on the 27th that it recorded consolidated sales of 8.7735 trillion KRW and an operating profit of 460.6 billion KRW for the second quarter of this year.

Compared to the same period last year, sales increased by 73.0% and operating profit rose by 135.5%. Compared to the previous quarter, sales grew by 0.3%, while operating profit and net income decreased by 27.3% and 17.2%, respectively.

The expected tax credit amount of 110.9 billion KRW for the second quarter was included in accordance with the Advanced Manufacturing Production Tax Credit (AMPC) clause under the U.S. Inflation Reduction Act.

However, operating profit declined compared to the previous quarter due to some costs borne from material expenses and cost increases incurred during the recall process of General Motors (GM)'s electric vehicle 'Bolt EV.' LG Energy Solution disclosed, "A one-time provision of 151 billion KRW, reflecting LG's share of the GM recall-related burden, was recorded as expenses equally split between LG Electronics and our company."

This content was produced with the assistance of AI translation services.