The news that LG Energy Solution turned to an operating loss on a consolidated basis in the fourth quarter of last year has caused its stock price to drop further in early trading on the 9th.
As of 10:03 a.m. on this day, LG Energy Solution is trading at 360,000 won, down 13,500 won (3.61%) compared to the previous trading day.
LG Energy Solution disclosed at 9:41 a.m. that its consolidated sales in the fourth quarter of last year were provisionally counted at 6.4512 trillion won, a decrease of 19.4% compared to the same period last year, with an operating loss of 225.5 billion won.
Securities analysts forecast that the poor performance of LG Energy Solution will continue until the first quarter of this year. Kang Dong-jin, a researcher at Hyundai Motor Securities, noted, "The performance in the fourth quarter of last year fell short of the initial consensus due to larger-than-expected one-time expenses, sluggishness in Europe, and delays in revenue recognition for the energy storage system (ESS) business," adding, "This trend will carry over to the first quarter of this year."
However, uncertainty is expected to recover slightly following the inauguration of U.S. President Donald Trump. Kang noted, "Increased likelihood of more favorable advancement in autonomous driving commercialization due to regulatory rollbacks by the Trump administration, combined with heightened regulations and technology controls on Chinese battery corporation CATL, will gradually reduce reliance on Chinese batteries."