LG Energy Solution's stock has dropped more than 6% after the company reported second-quarter earnings that fell short of market expectations.
As of 10:04 a.m. on July 7, LG Energy Solution shares were trading at 333,000 won, down 21,500 won (6.06%) from the previous trading day. During the session, the stock fell as low as 325,500 won, marking a decline of over 8%.
The disappointing results have dampened investor sentiment. The company announced that its consolidated revenue for the second quarter of this year was 7.56 trillion won, with an operating profit of 113.3 billion won. While revenue increased by 24.8% compared to the same period last year and rose 15.3% from the previous quarter, operating profit saw a significant decline of 77.0% year-on-year. However, it did return to profitability after a loss in the previous quarter.
The gap between actual results and market expectations was substantial. According to financial information provider FnGuide, the consensus forecast for operating profit from securities firms was 205.2 billion won, which the actual results did not meet.
The reported figures include 241 billion won from the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA). Excluding this amount, the company would have recorded an operating loss of 127.7 billion won for the second quarter. LG Energy Solution has changed its accounting treatment for North American production subsidies starting in the first quarter of this year, reflecting AMPC in revenue and other income.
LG Energy Solution stated, "These preliminary results are provided for investor convenience before the completion of the external auditor's review, and there may be differences in the final results."
* This article has been translated by AI.
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