LG Energy swings to Q2 loss on EV market slowdown

LG Energy Solution Ltd.

(LGES), Korea's leading battery maker, said Thursday it swung to a net loss in the second quarter from a year earlier amid a prolonged slowdown in the electric vehicle (EV) market.

In the three months that ended in June, LGES posted a net loss of 328.6 billion won ($228.4 million), compared with a net profit of 90.6 billion won in the same period last year, the company said in a press release.

"Sluggish EV sales in the North American market and the suspension of operations at U.S. joint venture plants since early this year weighed on the quarterly results," a company official said.

Ultium Cells LLC, the battery joint venture between LGES and General Motors, temporarily suspended operations at its first plant in Ohio and its second plant in Tennessee in January due to slowing demand.

Operating profit plunged 77 percent to 113.3 billion won in the second quarter from 492.1 billion won a year earlier.

The operating profit was 43.8 percent below the average estimate compiled by Yonhap Infomax, the financial data arm of Yonhap News Agency.

A consensus estimate for net p ...