LG Energy Solution quarterly profit misses forecasts, shares slide
Technology
LGES said it had reflected a one-off cost of 151 billion won for GM's Bolt EV recall
SEOUL (Reuters) - South Korea's LG Energy Solution Ltd (373220.KS) missed expectations for quarterly profit on Thursday as the battery maker booked a one-off cost for General Motor's recall of its Bolt electric vehicle, sending its shares down as much as 4.5%.
The company, which supplies General Motors Co (GM.N), Tesla Inc (TSLA.O) and others, reported an operating profit of 461 billion won ($363 million) for the April-June period, versus 196 billion won a year earlier.
That compared with the company's estimate of 612 billion won announced earlier this month and an average analyst forecast of 641 billion won compiled by Refinitiv SmartEstimate.
LGES said it had reflected a one-off cost of 151 billion won for GM's Bolt EV recall, which involved replacing battery packs and modules due to fire risks with earlier models.
The provision was driven by higher costs of materials for the ongoing GM recall process, LGES said in a statement.
Revenue for the quarter rose 73% to 8.8 trillion won, LG Energy said in a regulatory filing.
Shares of LGES were trading down 1.9% after falling as much as 4.5% in morning trade, versus a 0.4% rise in the benchmark KOSPI (.KS11) at 0033 GMT.
