SEOUL: South Korea’s LG Energy Solution Ltd (LGES) said on Tuesday it swung to profit in the October-December quarter, even though its electric vehicle (EV) battery demand was weaker than expected as automakers grapple with a global chip shortage.
The battery maker, which went public last month in the country’s biggest ever IPO, posted an operating profit of 76 billion won ($63.5 million) for the fourth quarter, the company said in its maiden earnings report.
That compares with a 150 billion won profit estimate by two analysts polled by Refinitiv and a loss of 479 billion won in the same period a year earlier.
Revenue at the company, which accounts for a fifth of the global EV battery market, increased 2% to 4.4 trillion won from a year earlier.
LGES made a stellar market debut in late January, becoming South Korea’s second most valuable company after only Samsung Electronics Co Ltd, reflecting upbeat prospects for EV battery industry.
Analysts noted that weak battery demand from automakers hit by a global chip shortage had hurt the company’s results.
LGES’ cross-town rivals SK On and Samsung SDI Co Ltd said the chip shortage had weighed on their battery demand in the fourth quarter.
($1 = 1,196.8700 won)
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