LG Energy Solution posts KRW 6.1619 trillion in consolidated revenue and KRW 195.3 billion in operating profit Despite continued EV demand slowdown, the company makes meaningful progress in EV and ESS battery businesses, and enhances its fundamental competitiveness in supply chain and R&D In response to slower-than-expected EV market growth, LG Energy Solution to focus on optimizing operation and improving profitability, while continuing to pursue technological and cost competitiveness SEOUL, South Korea, July 24, 2024 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced its second quarter earnings, along with its business achievements and key action plans to counter slower-than-expected EV market growth. The company posted consolidated revenue of KRW 6.1619 trillion, a 0.5 percent increase quarter-on-quarter and 29.8 percent decrease year-on-year. The operating profit was KRW 195.3 billion, a 24.2 percent increase quarter-on-quarter and 57.6 percent decrease year-on-year, with operating profit margin of 3.2 percent. "EV demand slowdown and the impact of declining metal prices on average selling price (ASP) continued through this quarter," said Chang Sil Lee, CFO of LG Energy Solution. "However, the revenue slightly increased quarter-on-quarter, thanks to increased shipments in response to new EV model launch by customers and revenue growth from ESS batteries for power grids." "The operating profit was affected by fixed cost burden due to utilization rate adjustment," Lee said. "However, the IRA tax credit effect more than doubled from the previous quarter thanks to increased volume in North America, driving a 24.2 percent quarter-on-quarter increase in operating profit." The operating profit includes the estimated IRA tax credit amount of KRW 447.8 billion. Excluding the IRA tax credit, the company would have recorded quarterly operating loss of KRW 252.5 billion. 2Q Progress: Business achievements and enhanced fundamental strengths Despite ongoing global EV demand slowdown and subsequent market uncertainties, LG Energy Solution continued ...