SEOUL, July 7 (Reuters) - South Korea's LG Energy Solution (LGES) , an electric car battery supplier for General Motors and Tesla , on Monday estimated a 152% rise in its quarterly operating profit.
LGES said its operating profit was likely 492 billion won ($360.94 million) for the April-June period.
That compared with a 195 billion won profit a year earlier and a 294 billion won profit forecast compiled by LSEG SmartEstimate, weighted toward analysts who are more consistently accurate.
Analysts said LG Energy Solution’s operating profit likely benefited from extra demand by automakers in the second quarter, as many rushed to secure battery cells ahead of potential U.S. tariffs. Automakers were also likely betting on a recovery in sluggish electric vehicle demand, prompting early purchases.
The South Korean battery maker said it expected an operating profit of 1.4 billion won ($1.03 million) in the second quarter excluding tax credits under the U.S. Inflation Reduction Act.
LGES is expected to release detailed results in late July.
($1 = 1,363.1000 won)
Reporting by Joyce Lee and Heekyong Yang; Editing by Ed Davies
Source: Reuters