(LEAD) LG Energy Q3 operating profit up 25.7 pct on ESS demand

LG Energy Solution, South Korea's leading battery manufacturer, reported a 25.7% increase in estimated operating profit for the third quarter, driven by robust exports of energy storage systems. Operating profit soared to 756 billion won ($564.2 million) in the three months ending in September, up from 601.3 billion won a year earlier, according to a press release.

Despite a slowdown in the electric vehicle sector, strong shipments to North America and mid- and low-priced pouch-type battery sales in Europe bolstered the company's earnings. Sales surged 59% to 9.64 trillion won ($7.2 billion) in the quarter, compared to 6.06 trillion won in the same period last year. The company qualified for a 416.9 billion won tax credit under the U.S. Inflation Reduction Act's Advanced Manufacturing Production Credit program.

Excluding the AMPC, the operating profit for the quarter was 339.1 billion won. From January to September, operating profit dropped 54.9% to 661.6 billion won, while sales increased 26.1% to 23.76 trillion won. Final third-quarter earnings are expected on November 3.