LG Energy Solution Ltd. announced on Monday that its operating profit for the three months ending June 30 dropped 58% from the previous year to 195.3 billion won, which is approximately $141 million. This figure fell short of analyst estimates, which had projected a profit of 282 billion won.
Without including the tax credits provided under the U.S. Inflation Reduction Act, LG Energy would have incurred an operating loss of 252.5 billion won. The company also reported a 30% decrease in revenue, which fell to 6.2 trillion won during the quarter.
The primary reason for the missed estimates and decline in profit was attributed to the continued slowdown in sales of electric vehicles globally. This challenging market environment has significantly impacted the demand for batteries, which is a core business for LG Energy Solution.
