LG Energy Solution records KRW 6.1287 trillion in consolidated revenue and KRW 157.3 billion in operating profit Despite market uncertainties, the company bears fruits in expanding U.S. operation and developing new business areas LG Energy Solution to focus on strengthening fundamental competitiveness by improving investment efficiency and cost-competitiveness SEOUL, South Korea, April 24, 2024 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced its first quarter earnings, along with its key achievements in expanding U.S. production operations and new businesses. The company posted consolidated revenue of KRW 6.1287 trillion, a 23.4 percent decrease quarter-on-quarter. It also marked approximately 30 percent decrease from the same period last year. The company's first quarter operating profit was KRW 157.3 billion, a 53.5 percent decrease quarter-on-quarter and 75.2 percent decrease year-on-year, with a margin of 2.6 percent. "Revenues from cylindrical EV batteries have increased by double-digit, as we have taken active response to demands from the strategic customer," said Chang Sil Lee, CFO of LG Energy Solution. "However, total revenue declined due to demand weakening in the upstream market, in addition to prolonged metal price impact on average selling prices (ASP)." "The operating profit was affected by fixed cost burden from revenue decrease and utilization rate adjustment caused by EV demand slowdown, as well as the increased costs of metal expenses from lagging consumption of raw material inventories," Lee said. The figure includes the estimated IRA tax credit amount of KRW 188.9 billion, which has also declined due to demand slowdown and the temporary suspension of production lines in the Michigan facility's retooling. Excluding the IRA tax credit, the company would have recorded quarterly operating loss of KRW 31.6 billion. Stable operation and continued business achievements amid market uncertainties LG Energy Solution, despite global EV demand slowdown and subsequent market uncertainties, has continued with its investments for future-preparedness and ...