LG Energy Solution reported a third-quarter operating profit of 756 billion won, beating analyst estimates. The company got a boost from US manufacturing incentives and high demand for energy-storage systems. Revenue reached 9.6 trillion won as the firm shifted production to meet data center needs. Shares rose 7% in Seoul.
LG Energy Solution Ltd. reported preliminary third-quarter earnings that were more than double analyst estimates as the South Korean battery maker benefited from US manufacturing incentives and surging demand for energy-storage systems. Operating profit came in at 756 billion won ($56 million) for the three months ended September 30, compared with the 365.5 billion won average of analysts surveyed by Bloomberg. Revenue at 9.6 trillion won outpaced the forecast of 8.5 trillion won. Earnings were supported by US production tax credits as the company increases energy-storage system production in the country, as well as subsidies for American-made electric-vehicle batteries. The restart of output at joint-venture facilities in North America added further support, as did a pick-up in EV shipments to Europe. LG Energy has been shifting production capacity to energy-storage systems to cater to rocketing demand from data centers as global sales of its batteries for EVs soften. It's also expanding production in the US to benefit from its Advanced Manufacturing Production Credit scheme. The company's shares rose as much as 7% in Seoul.