LG Energy Solution is showing weakness early in the session after releasing preliminary second-quarter results that fell short of market expectations.
As of 9:32 a.m. on the 7th, LG Energy Solution was trading at 338,000 won on the Korea Exchange, down 16,500 won (4.65%) from the previous session. Early in the session, it fell as much as 8.18% to 325,500 won.
Before the market opened that day, LG Energy Solution disclosed preliminary consolidated results for the second quarter, with revenue of 7.5602 trillion won and operating profit of 113.3 billion won. Compared with the same period a year earlier, revenue rose 24.8% but operating profit fell 77.0%. Versus the prior quarter, revenue increased 15.3% and operating profit swung to a profit.
However, operating profit missed market expectations. According to FnGuide, the second-quarter operating profit consensus from securities over the past month was 205.2 billion won, and the actual preliminary results fell well short of that.
The results reflected 241.0 billion won in Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA). Excluding this, the second-quarter operating loss was tallied at 127.7 billion won, putting the company in the red.
Since the first quarter of this year, LG Energy Solution has changed its accounting treatment of North American production subsidies and has been reflecting AMPC in revenue and other income.
The company said these figures are preliminary, provided for investor convenience before the completion of the external auditor's review, and may differ from the finalized results.