Reuters
S.Korea battery maker LGES sees brighter Q2 outlook, lifts capex
SEOUL (Reuters) -LG Energy Solution Ltd (LGES) booked a 24% quarterly profit drop on Wednesday, far milder than market estimates, as strong sales of batteries to Tesla Inc offset troubles at automotive clients where chip shortages have hit production. Rising raw materials prices and supply-chain disruption set LGES up for a lean first quarter, but with Tesla reporting firm sales of its electric vehicles, LGES not only cushioned the blow, but said it has set itself up for a robust second quarter. Chief Financial Officer Lee Chang Sil, at an earnings briefing, said he expects “double-digit revenue growth” in April-June and that LGES is working to minimise the impact of surging raw material prices through long-term supply deals, investing in mines, and sharing cost burden with automakers.
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