LG Energy Solution posts 929.8 billion won net profit in 2021
The results are its first as a public company, as LG Energy Solution listed in Korea in late January.
Its 2021 earnings reflect costs related to a massive recall of Chevy Bolts due to battery fires in vehicles with LG Energy Solution batteries installed. The company provisioned 700 billion won last year for the recall.
Operating profit came to 768.5 billion won last year, compared to 289.5 billion won loss the year before.
The earnings also reflect a settlement payment of approximately 1 trillion won from SK Innovation as a result of a battery trade secret dispute that came to conclusion early last year.
FnGuide's consensus for the net was 868.8 billion won.
The Korean battery company announced Tuesday it will invest 6.3 trillion won in its battery manufacturing facilities this year. It annual revenue target is 19.2 trillion won, up 8 percent on year.
LG Energy Solution's revenue came to 17.9 trillion won last year, up 42 percent.
"Due to the auto chip supply shortage and a rise in the cost of key raw materials, the annual sales target of 18.9 trillion won was narrowly missed in 2021," the company said in a release Tuesday.
"But with the global surge in demand for EVs and a boost in manufacturing efficiency, sales were up by 42 percent."
The pledged investment of 6.3 trillion won this year is 58 percent more than what was invested last year.
Investments will focus on expanding manufacturing capacity at joint venture factories and wholly-owned factories at home and in China, the company said.
Last month, LG Energy Solution said it would invest $2.6 billion with General Motors to build a third joint venture factory in the United States.
LG Energy Solution fell 1.64 percent is trading on Tuesday following the results announcement.
BY JIN EUN-SOO [email@example.com]