LGES Q1 profit falls less than expected as battery sales to Tesla rise -Breaking
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© Reuters. FILE PHOTO – An employee passes the LG Energy Solution logo at Seoul’s office building, South Korea. November 23rd, 2021. REUTERS/Kim Hong-JiBy Heekyong Yang, Byungwook Kim
SEOUL (Reuters) – South Korea’s LG Energy Solution Ltd on Wednesday reported a smaller-than-expected 24% drop in quarterly profit as strong sales of its cylindrical batteries to Tesla (NASDAQ:) Inc offset a hit to production due to chip shortages.
According to South Korean giant South Korean Battery, operating profit dropped from 341billion won last year to 259billion won in January-March. It was 341billion won.
Refinitiv SmartEstimate reports that 16 analysts had estimated a profit of 141 Billion Won.
The revenue rose by 2.1% to 4.3 Trillion won.
It also supplies lithium-ion batteries to Lucid electric-vehicle company. Last month the company announced that it will invest 1.7 trillion won to create a factory in Arizona for battery manufacturing by 2024. This is to fulfill demand from other North American startups.
LGES’ shares were down 4.4% in comparison to the benchmark’s 1.9% decline as of 0113 GMT.
($1 = 1,263.3300 won)
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