STOCKS | LG Energy Solution Forecasts 77% Drop in Second-Quarter Operating Profit

LG Energy Solution said it expects operating profit for April to June to fall 77% to 113 billion won due to weak electric vehicle demand that continued to weigh on battery sales. According to Jin10, the market consensus had put operating profit at 249 billion won. In a filing submitted to regulators, the company said revenue is expected to rise 24.8% year over year to 7.6 trillion won. LG Energy Solution said its quarterly earnings guidance includes tax credits provided under the U.S. Inflation Reduction Act for the company’s battery production in the United States. Excluding those tax credits, the company said it would have recorded an operating loss of 128 billion won.