LG Energy Solution forecasts huge fourth quarter earnings miss

LG Energy Solution logo at the company's headquarters at Yeouido, western Seoul [NEWS1]

LG Energy Solution reported a weaker-than-expected fourth-quarter operating profit of 237.4 billion won ($191 million), up 213 percent on year, according to an earnings guidance released Monday.

The figure fell far short of the market expectation of 453.4 billion won compiled by FnGuide.

This brings LG Energy Solution’s operating profit for all of 2022 to a record 1.2 trillion won, up 57.9 percent on year.

Quarterly sales were 8.54 trillion won, up 92.3 percent on year.

The sales figure beat the analyst expectation of 8.23 trillion won.

The company's annual sales estimate came to 25.6 trillion won, up 43.4 percent on year.

The battery maker’s operating profit for the October-December period dropped by 54.5 percent compared to the previous quarter. LG Energy Solution cited a one-off increase in expenses driven by the strong dollar and raw material costs for the significant decline.

Neither a breakdown in earnings nor an estimate for net profit were provided in the guidance.

LG Energy Solution will post its annual results on Jan. 27.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]