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© Reuters. An worker walks previous the brand of LG Energy Solution at its workplace constructing in Seoul, South Korea, November 23, 2021. Picture taken November 23, 2021. REUTERS/Kim Hong-Ji
By Heekyong Yang and Joyce Lee
SEOUL (Reuters) – South Korean battery agency LG Energy Solution (LGES) posted on Friday an increase of 43% in quarterly revenue, helped by elevated output from its U.S. joint-venture manufacturing facility with General Motors (NYSE:).
The provider of Tesla (NASDAQ:), GM, Volkswagen (ETR:) and different automakers reported working revenue of 338 billion received ($252.40 million) for the October-December interval, up from 237 billion a 12 months earlier.
The revenue is in step with an organization estimate this month of 338 billion received, however exceeds a determine of 298 billion received compiled by LSEG SmartEstimate, which is weighted towards analysts who’re extra persistently correct.
However, fourth-quarter revenue dropped greater than half from the earlier quarter, attributable to weak demand for electrical autos (EV) in Europe.
“A temporary slowdown of global EV battery demand growth is expected due to original equipment manufacturers’ (OEMs’)conservative inventory control along with continued metal price decline,” LGES mentioned in an announcement. OEMs discuss with automakers.
Risk elements this 12 months can be the altering tempo of EV transition plans by automakers, rising competitors in Europe in addition to political uncertainties, together with the U.S. presidential election, it added.
LGES’ forecast of this 12 months’s market outlook comes after its automaker buyer Tesla warned on Wednesday of a pointy slowdown this 12 months in gross sales development.
On Thursday, Hyundai Motor (OTC:) Co additionally flagged the slowing of EV market sentiment.
Revenue for the quarter fell 6.3% year-on-year to eight trillion received.
Shares of LGES had been buying and selling up 2.6% within the morning commerce after the quarterly outcomes, versus an increase of 0.4% within the benchmark .
($1=1,339.1500 received) (This story has been refiled so as to add dropped phrase ‘demand’ in paragraph 5)