LG Energy Solution Reports Quarterly Loss After 3 Years... Clear Profitability Decline Amid Chasm (Update)

Operating Loss of 225.5 Billion KRW in Q4 Last Year

On the 10th, LG Energy Solution headquarters on Yeouidaero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

LG Energy Solution recorded a quarterly loss for the first time in three years since the third quarter of 2021.

On the 9th, LG Energy Solution announced that its sales for the fourth quarter of last year were 6.4512 trillion KRW, with an operating loss of 225.5 billion KRW. Compared to the same period last year, sales decreased by 19.4%, and operating profit turned into a loss. Compared to the previous quarter, sales also decreased by 6.2%, and operating profit turned into a loss.

The scale of the Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) was 377.3 billion KRW, and excluding this, the operating profit was -602.8 billion KRW. Last year's annual sales were 25.6196 trillion KRW, with an operating profit of 575.4 billion KRW. Compared to 2023, sales decreased by 24.1%, and operating profit decreased by 73.4%.

Quarterly Performance Graph of LG Energy Solution. Data provided by LG Energy Solution.

LG Energy Solution's quarterly loss is the first loss since the third quarter of 2021. LG Energy Solution had recorded a loss in the third quarter of 2021 due to setting aside a provision of 620 billion KRW for the recall of General Motors (GM)'s 'Bolt EV.' Except for the period with the provision issue, there have been fluctuations but no losses recorded. On the contrary, annual operating profit steadily increased, showing 768.5 billion KRW in 2021, 1.2137 trillion KRW in 2022, and 2.1632 trillion KRW in 2023. Sales doubled from 17.8519 trillion KRW in 2021 to 33.7455 trillion KRW in 2023.

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