Thanks to a super boom in the global power market, LS Electric set record quarterly highs for both sales and operating profit in the second quarter.
LS Electric disclosed on the 23rd that it posted second-quarter sales of 1.577 trillion won and operating profit of 178.5 billion won this year. Compared with a year earlier, sales rose 32.2% and operating profit jumped 64.4%. From the previous quarter, sales and operating profit increased 14.6% and 41%, respectively.
New orders in the second quarter totaled about 2.1 trillion won. The current order backlog remains at 7 trillion won, up about 1.4 trillion won from the previous quarter.
LS Electric's second-quarter results were led by its data center power distribution business and extra-high-voltage transformer business. A LS Electric official said, "Expansion of global artificial intelligence (AI) data centers and increased capital spending in advanced manufacturing such as semiconductors drove performance in power distribution solutions, while sustained demand to replace aging power grids worldwide also boosted the extra-high-voltage transformer business."
LS Electric's second-quarter extra-high-voltage transformer sales jumped 91.2% from the same period last year. Sales at LS Power Solution, its extra-high-voltage transformer subsidiary, also rose about 39% over the same period.
By region, North America led the results. LS Electric recorded about 400 billion won in sales in North America alone. In step with expanding North American demand, LS Electric is increasing investment in key production bases, including "LS Electric Utah" in Utah and the "Bastrop Campus" in Texas. The strategy is to accelerate growth in the North American market by expanding local production capacity and high-end product technologies.
An LS Electric official said, "As demand for power infrastructure surges across global markets including North America, orders centered on high value-added products—from power distribution solutions to extra-high-voltage transformers—have increased, enabling us to achieve record results," adding, "We will also deliver results in future power solution businesses such as high-voltage direct current (HVDC) and low-voltage direct current (LVDC), and step up efforts to expand our global market share."