LG Energy Solution and LG Electronics Report Strong Q2 2024 Financial Results

LG Energy Solution : Releases 2024 Second-Quarter Results

SEOUL, July 25, 2024 - 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 its venture into more diverse product lineup, successfully landing new supply agreements in both EV and ESS battery businesses. The company signed off its first large-scale (39GWh) supply agreement for LFP batteries with Renault Group's Ampere, a meaningful achievement in the LFP segment that is currently dominated by Chinese battery manufacturers. LG Energy Solution also reaffirmed its technological leadership through this agreement, as it became first in the world to apply cell-to-pack (CTP) technology to a pouch form factor. The company also started successful mass production and shipment from its joint venture plant with Hyundai Motor Group in Indonesia, adding another EV battery production hub in Asia for a proactive response to rapidly-growing EV demands in the region. The company also made significant progress in its ESS battery business, as it secured a large-scale supply agreement for power grids in Arizona (4.8GWh). Capitalizing on its expertise as a comprehensive solution provider, LG Energy Solution will deliver a total ESS solution including system integration (SI) from LG Energy Solution Vertech, Inc., offering differentiated customer value. Along with business achievements, the company also concentrated on heightening its fundamental competitiveness. LG Energy Solution further reinforced its raw material supply chain by successfully securing lithium spodumene through offtake and investment agreements with a lithium producer with mines in Australia. The company also drew achievements in battery-related technologies, including developing AI algorithms for cell designs that are optimized to customer needs. It also signed an MoU with Analog Devices, Inc. on advancing cell temperature measurement technology. ■ Key action plans to counter slower EV market growth In response to slow EV market growth, LG Energy Solution revised down its annual guidance, with its annual consolidated revenue now expected to decrease by more than 20 percent from last year. The company also lowered this year's expected capacity eligible for the IRA tax credit from 45~50GWh to 30~35 GWh, due to adjustments in ramp-up speed in response to changing customer demands. Despite unfavorable market environment expected in the second-half of the year, the company is looking forward to a meaningful increase in shipments, in line with the rising demand in North America and Europe thanks to new EV model launches. It also expects increased revenue from pouch-type mobility & IT batteries due to customers' demands for premium batteries. ESS battery business is expected to benefit from increased sales from power grid projects. At the same time, to counter continued market uncertainties, LG Energy Solution will prioritize optimizing operation and improving profitability. The company will maximize the utilization rate at each site by adjusting ramp-up speed, scaling down investment, and converting existing lines for other applications. Moreover, it will execute capex based on strategic priorities. Also, the company will secure competitive edges in both products and future technologies. It will first establish differentiated product portfolio by launching 4680 cells and expanding the production of ESS LFP batteries. At the same time, the company will accelerate the development of future battery technologies by setting up pilot lines for dry electrode production in its facility in Ochang, Korea. Lastly, the company will stay committed to improving cost competitiveness by expanding the scope of direct sourcing from critical minerals to precursors and increasing investment in upstream suppliers. It will also continue to enhance production efficiency by simplifying production processes and advancing smart factory technologies. "Despite experiencing more headwinds than previously expected, we will remain agile through transitions and establish strong fundamental competitiveness, delivering differentiated values to our customers," said David Kim, CEO of LG Energy Solution. "With these efforts, we aim to solidify our position as a front-runner leading the future of battery industry."

LG Energy Solution Releases 2024 Second-Quarter Results

LG Energy Solution posts KRW 6.1619 trillion in consolidated revenue and KRW 195.3 billion in operating profitDespite 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&DIn 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 its venture into more diverse product lineup, successfully landing new supply agreements in both EV and ESS battery businesses. The company signed off its first large-scale (39GWh) supply agreement for LFP[1] batteries with Renault Group's Ampere, a meaningful achievement in the LFP segment that is currently dominated by Chinese battery manufacturers. LG Energy Solution also reaffirmed its technological leadership through this agreement, as it became first in the world to apply cell-to-pack (CTP) technology to a pouch form factor. The company also started successful mass production and shipment from its joint venture plant with Hyundai Motor Group in Indonesia, adding another EV battery production hub in Asia for a proactive response to rapidly-growing EV demands in the region. The company also made significant progress in its ESS battery business, as it secured a large-scale supply agreement for power grids in Arizona (4.8GWh). Capitalizing on its expertise as a comprehensive solution provider, LG Energy Solution will deliver a total ESS solution including system integration (SI) from LG Energy Solution Vertech, Inc., offering differentiated customer value. Along with business achievements, the company also concentrated on heightening its fundamental competitiveness. LG Energy Solution further reinforced its raw material supply chain by successfully securing lithium spodumene through offtake and investment agreements with a lithium producer with mines in Australia. The company also drew achievements in battery-related technologies, including developing AI algorithms for cell designs that are optimized to customer needs. It also signed an MoU with Analog Devices, Inc. on advancing cell temperature measurement technology. Key action plans to counter slower EV market growth In response to slow EV market growth, LG Energy Solution revised down its annual guidance, with its annual consolidated revenue now expected to decrease by more than 20 percent from last year. The company also lowered this year's expected capacity eligible for the IRA tax credit from 45~50GWh to 30~35 GWh, due to adjustments in ramp-up speed in response to changing customer demands. Despite unfavorable market environment expected in the second-half of the year, the company is looking forward to a meaningful increase in shipments, in line with the rising demand in North America and Europe thanks to new EV model launches. It also expects increased revenue from pouch-type mobility & IT batteries due to customers' demands for premium batteries. ESS battery business is expected to benefit from increased sales from power grid projects. At the same time, to counter continued market uncertainties, LG Energy Solution will prioritize optimizing operation and improving profitability. The company will maximize the utilization rate at each site by adjusting ramp-up speed, scaling down investment, and converting existing lines for other applications. Moreover, it will execute capex based on strategic priorities. Also, the company will secure competitive edges in both products and future technologies. It will first establish differentiated product portfolio by launching 4680 cells and expanding the production of ESS LFP batteries. At the same time, the company will accelerate the development of future battery technologies by setting up pilot lines for dry electrode production in its facility in Ochang, Korea. Lastly, the company will stay committed to improving cost competitiveness by expanding the scope of direct sourcing from critical minerals to precursors and increasing investment in upstream suppliers. It will also continue to enhance production efficiency by simplifying production processes and advancing smart factory technologies. "Despite experiencing more headwinds than previously expected, we will remain agile through transitions and establish strong fundamental competitiveness, delivering differentiated values to our customers," said David Kim, CEO of LG Energy Solution. "With these efforts, we aim to solidify our position as a front-runner leading the future of battery industry." About LG Energy Solution LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 58,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com. [1] LFP: lithium, iron, phosphate View original content:https://www.prnewswire.com/news-releases/lg-energy-solution-releases-2024-second-quarter-results-302206017.html SOURCE LG Energy Solution Market News and Data brought to you by Benzinga APIs

LG Energy Solution Releases 2024 Second-Quarter Results By Investing.com

The company posted consolidated revenue of , a 0.5 percent increase quarter-on-quarter and 29.8 percent decrease year-on-year. The operating profit was , 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 , 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 , driving a 24.2 percent quarter-on-quarter increase in operating profit." The operating profit includes the estimated IRA tax credit amount of . Excluding the IRA tax credit, the company would have recorded quarterly operating loss of . Despite ongoing global EV demand slowdown and subsequent market uncertainties, LG Energy Solution continued its venture into more diverse product lineup, successfully landing new supply agreements in both EV and ESS battery businesses. The company signed off its first large-scale (39GWh) supply agreement for LFP batteries with Renault (EPA:RENA) Group's Ampere, a meaningful achievement in the LFP segment that is currently dominated by Chinese battery manufacturers. LG Energy Solution also reaffirmed its technological leadership through this agreement, as it became first in the world to apply cell-to-pack (CTP) technology to a pouch form factor. The company also started successful mass production and shipment from its joint venture plant with Hyundai Motor (OTC:HYMTF) Group in , adding another EV battery production hub in for a proactive response to rapidly-growing EV demands in the region. The company also made significant progress in its ESS battery business, as it secured a large-scale supply agreement for power grids in (4.8GWh). Capitalizing on its expertise as a comprehensive solution provider, LG Energy Solution will deliver a total ESS solution including system integration (SI) from LG Energy Solution Vertech, Inc., offering differentiated customer value. Along with business achievements, the company also concentrated on heightening its fundamental competitiveness. LG Energy Solution further reinforced its raw material supply chain by successfully securing lithium spodumene through offtake and investment agreements with a lithium producer with mines in . The company also drew achievements in battery-related technologies, including developing AI algorithms for cell designs that are optimized to customer needs. It also signed an MoU with Analog Devices (NASDAQ:ADI), Inc. on advancing cell temperature measurement technology. In response to slow EV market growth, LG Energy Solution revised down its annual guidance, with its annual consolidated revenue now expected to decrease by more than 20 percent from last year. The company also lowered this year's expected capacity eligible for the IRA tax credit from 45~50GWh to 30~35 GWh, due to adjustments in ramp-up speed in response to changing customer demands. Despite unfavorable market environment expected in the second-half of the year, the company is looking forward to a meaningful increase in shipments, in line with the rising demand in and thanks to new EV model launches. It also expects increased revenue from pouch-type mobility & IT batteries due to customers' demands for premium batteries. ESS battery business is expected to benefit from increased sales from power grid projects. At the same time, to counter continued market uncertainties, LG Energy Solution will prioritize optimizing operation and improving profitability. The company will maximize the utilization rate at each site by adjusting ramp-up speed, scaling down investment, and converting existing lines for other applications. Moreover, it will execute capex based on strategic priorities. Also, the company will secure competitive edges in both products and future technologies. It will first establish differentiated product portfolio by launching 4680 cells and expanding the production of ESS LFP batteries. At the same time, the company will accelerate the development of future battery technologies by setting up pilot lines for dry electrode production in its facility in Ochang, . Lastly, the company will stay committed to improving cost competitiveness by expanding the scope of direct sourcing from critical minerals to precursors and increasing investment in upstream suppliers. It will also continue to enhance production efficiency by simplifying production processes and advancing smart factory technologies. "Despite experiencing more headwinds than previously expected, we will remain agile through transitions and establish strong fundamental competitiveness, delivering differentiated values to our customers," said , CEO of LG Energy Solution. "With these efforts, we aim to solidify our position as a front-runner leading the future of battery industry." About LG Energy Solution LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 58,000 patents. Its robust global network, which spans North America, Europe, and , includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com.

LG Electronics : Releases Second-Quarter 2024 Financial Results

Company Sets New Records for Second Quarter Revenue and Operating Profit Through Balanced Qualitative Growth in Core and Future Businesses SEOUL, July 25, 2024- LG Electronics Inc. (LG) today announced second-quarter 2024 consolidated revenue of KRW 21.69 trillion and operating profit of KRW 1.20 trillion, reflecting an 8.5 percent year-over-year increase in revenue and a 61.2 percent surge in operating profit. These figures mark new records for the highest second-quarter revenue and operating profit in the company's history. Key drivers of this performance include the home appliance and vehicle component sectors, both achieving their highest quarterly revenues to date. Sales from LG's Home Appliance & Air Solution Company and Vehicle component Solutions Company combined reached KRW 11.53 trillion, up 8.2 percent from the previous year. Both Companies also reported record-high second-quarter operating profits, totaling KRW 776.1 billion, which represents a 45 percent year-over-year increase. These results highlight LG's balanced growth across its core and future businesses. This growth demonstrates not only external expansion but also solid profitability, contributing to qualitative improvements in overall performance. LG continues to transform its business portfolio towards a future-oriented approach, maximizing the potential of existing businesses while securing new growth opportunities. The company is also focused on rapidly advancing high-growth potential new businesses. The fast growth in LG's B2B sector significantly contributes to establishing a future-oriented business structure. Despite a temporary slowdown in EV demand, the vehicle component business continues to grow, supported by a diversified client base of electric and internal combustion vehicles and a strong order backlog. Additionally, LG's heating, ventilation and air-conditioning (HVAC) business, which includes high-efficiency chillers, is exploring growth opportunities within the AI infrastructure sector. In the B2C domain, LG is accelerating the integration of new business models that combine traditional hardware sales with intangible, non-hardware offerings such as content, services and subscriptions. The webOS content and services business is expanding beyond TVs into IT and infotainment, with projected revenues set to surpass KRW 1 trillion this year. Additionally, the subscription business, which merges products with services, is gaining remarkable momentum. After achieving success in Korea, LG is now expanding this subscription model internationally. Last year, subscription revenue exceeded KRW 1 trillion, with growth accelerating this year. In June, 36.2 percent of major home appliances sold at LG Brand Shops in Korea were subscription-based. This model, particularly popular among young Korean customers, is now being introduced to global markets. For example, LG has launched LG Rent-Up in Malaysia, offering subscriptions for nine products, including washing machines, dryersand refrigerators. LG is also expediting the advancement of new businesses. The smart factory business, which combines the company's manufacturing expertise with AI, is expected to secure orders worth KRW 300 billion this year, expanding its customer base in industries such as semiconductors and biotechnology. Furthermore, LG's partnership with ChargePoint, North America's leading EV charging company, is set to boost the EV charging business by combining ChargePoint's chargers with LG's commercial display advertising solutions, 'LG DOOH Ads,' creating new market opportunities. The LG Home Appliance & Air Solution Companygenerated second-quarter revenue of KRW 8.84 trillion and an operating profit of KRW 694.4 billion. Compared to the same period last year, revenue increased by 11 percent and operating profit by 16 percent, marking the highest revenue for a single quarter and the strongest second-quarter operating profit to date. In the second quarter, LG's volume zone strategy - designed to address polarized market demand - proved effective by diversifying its product lineup and pricing to meet growing needs in emerging markets such as Latin America, the Middle East and Africa. Contributions from new business areas, including subscriptions and Online Brand Shop sales, bolstered the strong performance. Looking ahead to the third quarter, LG intends to remain agile in adapting to market shifts and to continue expanding its B2B sectors, particularly HVAC and built-in appliances. The recent acquisition of smart home platform company Athom is expected to create synergies within the home appliance sector. Additionally, LG will leverage its top-tier global manufacturing capabilities to secure robust profitability. The LG Vehicle component Solutions Companyachieved second-quarter revenue of KRW 2.69 trillion and an operating profit of KRW 81.7 billion. Revenue increased by 1 percent year-over-year, and the operating profit turned positive. This quarter's revenue was the highest for any quarter, and the operating profit was the strongest for a second quarter. Despite a temporary slowdown in the EV market during this period, LG saw growth by effectively addressing increased demand for premium in-vehicle infotainment products and plans to continue expanding its vehicle components business. This strategy includes increasing sales of premium new products as well as safety and convenience solutions, such as Advanced Driver Assistance Systems, in line with existing order programs. The LG Home Entertainment Companyposted second-quarter revenue of KRW 3.62 trillion and an operating profit of KRW 97 billion.Revenue increased by 15.3 percent compared to the same period last year, driven by a recovery in demand in Europe, a key market for premium OLED TVs. Growth also continued in the webOS content and service business. However, operating profit declined due to increased costs, including rising LCD panel prices. Overall TV market demand is expected to show modest growth in the third quarter compared to last year, with premium OLED TVs anticipated to outperform the broader market. LG will aim to maintain operational efficiency by minimizing cost burdens, such as rising LCD panel prices, through increased sales of OLED TVs. The LG Business Solutions Companyreported second-quarter revenue of KRW 1.46 trillion and an operating loss of KRW 5.9 billion. Revenue increased by 9.9 percent year-over-year,driven by expanded sales of strategic products such as LED signage, electronic whiteboards and gaming monitors. However, profitability was impacted by cost increases, including LCD panel prices, and ongoing investments in growth areas like EV charging and robotics. In the third quarter, market growth for premium products such as commercial displays and gaming monitors is expected to continue. The Company will focus on expanding sales of strategic products and improving profitability through efficient resource management.