UPDATED. 2024-11-08 07:55 (금)
LG Chem unlikely to achieve W10tr of battery revenues
LG Chem unlikely to achieve W10tr of battery revenues
  • Stan Lee
  • 승인 2019.10.25 15:53
  • 댓글 0
이 기사를 공유합니다

3Q accumulated sales at W5.86tr

LG Chem has slipped further away from achieving its annual 10 trillion won revenue goal for its battery business, as its accumulated sales up until the third quarter of this year fell short of 6 trillion won.

The biggest factors were the disruption in mass production plans at its EV battery plant in Poland and sluggish domestic sales caused by fires at Energy Storage Systems.

On an upside, the company managed to post an operating profit in the third quarter after experiencing consecutive deficit in the first and second quarters.

The lackluster performance in its battery division has made it difficult for LG Chem to achieve its company-wide sales goal of 32 trillion won, according to industry watchers. Its chemical sector is also suffering on account of sluggish global economic conditions, and if this continues, the company is forecast to post around 28 trillion won of sales, which is not much of an improvement from last year.

“We hope to improve our revenues next year to around 10 trillion won,” said Yoon Hyun-suk, head of LG Chem’s IR division.

The lower-than-expected battery sales are most likely to affect its capacity as well. Earlier this year, LG Chem was aiming for capacity of around 100-110 GWh by 2020. This is assuming that the company’s Poland plant will show stellar performance; as of the end of next year, the facilities there will account for up to 60% of LG Chem’s battery production. Other facilities in China and Korea take up around another 30%, with the rest coming from the US.

Meanwhile, from its ESS business, LG Chem could incur up to 100 billion won of losses this year. Up until the third quarter of this year, its accumulated deficit reached 204.7 billion won.

For the entire Q3, LG Chem posted 7.34 trillion won of sales and an operating profit of 380.3 billion won, which beat market estimates. Analysts expect the firm to improve in the fourth quarter on better productivity and more shipment of car batteries.
 

The Elec is South Korea’s No.1 tech news platform.


댓글삭제
삭제한 댓글은 다시 복구할 수 없습니다.
그래도 삭제하시겠습니까?
댓글 0
댓글쓰기
계정을 선택하시면 로그인·계정인증을 통해
댓글을 남기실 수 있습니다.

  • 515, Nonhyeon-ro, Gangnam-gu, Seoul, Republic of Korea 4F, Ahsung Bldg.
  • 대표전화 : 82-2-2658-4707
  • 팩스 : 82-2-2659-4707
  • 청소년보호책임자 : Stan LEE
  • 법인명 : The Elec Inc.
  • 제호 : THE ELEC, Korea Electronics Industry Media
  • 등록번호 : 서울, 아05435
  • 등록일 : 2018-10-15
  • 발행일 : 2018-10-15
  • 발행인 : JY HAN
  • 편집인 : JY HAN
  • THE ELEC, Korea Electronics Industry Media Prohibiting unauthorized duplication,publishing,modification and distribution the material on this Site for any purpose.
  • Copyright © 2024 THE ELEC, Korea Electronics Industry Media. All rights reserved. mail to powerusr@thelec.kr
ND소프트