Batteries: It’s tough out there
Q4/23 has also been a tough reporting period for cell producers with preliminary results for Chinese and Korean cellmakers suggesting that cell manufacturing industry conditions remain difficult. LG Energy Solutions reported preliminary results with a miss in its operating profit, coming in below consensus, implying that lower battery prices contributed to weaker revenue and high market inventories impacted demand. Plant under-utilisation is also likely to have weighed on profitability. It guided to mid-single digit revenue growth in 2024. Fellow Korean cellmaker Samsung SDI also missed consensus on Q4/23 operating profit on weakness in power tool cylindrical cells, although its large...
LG Energy Solutions