What is LG Energy Solution's forecasted operating profit for Q2 2024, and how does it compare to analyst expectations?

LG Energy Solution forecasts its April–June 2024 operating profit to fall 77% year-on-year to 113 billion won ($73.91 million), significantly below the LSEG SmartEstimate forecast of 249 billion won — a figure weighted toward more consistently accurate analysts.

Why is LG Energy Solution expecting such a sharp decline in operating profit, and what role do U.S. tax credits play in its reported result?

The sharp decline is driven by sluggish electric vehicle (EV) demand, impacting battery sales; key customers like GM are delaying EV programs, and LGES’s Ohio joint venture Ultium Cells is deferring worker returns due to weak demand. The reported 113 billion won profit includes U.S. Inflation Reduction Act tax credits for domestic battery production — without them, LGES would have posted an operating loss of 128 billion won.

LG Energy Solution forecasts 77% operating profit fall in Q2 on weak EV demand

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LG Energy Solution forecasts 77% operating profit fall in Q2 on weak EV demand

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