What is the story about?
SEOUL,
April 7 (Reuters) - South Korean battery maker LG Energy Solution (LGES) said on Tuesday it expects to post a first-quarter operating loss of 208 billion won ($138.16 million), as weaker demand from electric vehicles (EVs) makers weighed on earnings.
That compared with an LSEG SmartEstimate forecast of a 160 billion won loss, which was weighted toward analysts who are more consistently accurate.
Here are some details:
* LGES, which supplies Tesla, General Motors and HyundaiMotor among others, has been grappling with weaker EV batterydemand, with one of its major customers GM idling a Detroit EV plant until April. * Revenue would likely fall 2.5% to 6.6 trillion won from ayear earlier, LGES said. * The quarterly earnings guidance includes tax creditsprovided under the U.S. Inflation Reduction Act for thecompany's battery production in the United States, LGES said ina regulatory filing. Excluding the credits, LGES would haveposted an operating loss of 398 billion won. * To offset weakness in EV batteries, LGES is focusing ongrowing demand for energy storage systems (ESS), driven byrising electricity needs for AI data centres. * In February, LGES said it aims to triple its ESS revenuethis year from a year earlier. Nomura estimated the company'sESS revenue at about 2.8 trillion won in 2025. * Analysts also said a U.S. House bill, the CHARGE Act,introduced last month to ban imports of certain Chinese-madeenergy storage systems, could create opportunities for SouthKorean battery makers. The bill cite concerns that energystorage systems manufactured in China and imported to the UnitedStates may include remote monitoring capabilities. * LGES is set to report details earnings on April 30.($1 = 1,505.5000 won)
(Reporting by Heekyong YangEditing by Ed Davies)
