South Korea’s LG Chem Ltd, an electrical automobile (EV) battery provider for Tesla and a petrochemicals maker, mentioned on Monday its third-quarter working revenue probably jumped to a document excessive, beating analysts’ estimates.
The corporate didn’t elaborate on the explanations for its upbeat outlook however analysts attributed it to orders from Tesla and the coronavirus pandemic that lifted demand for dwelling home equipment – one of many functions for petrochemicals merchandise.
LG Chem estimated that its working revenue jumped 159% to 902 billion gained ($788.94 million) within the quarter ended September, above the 746 billion gained analyst forecast by Refinitiv SmartEstimate.
Income probably rose 9% to 7.5 trillion gained from a yr earlier, the corporate mentioned.
The agency is predicted to launch detailed earnings later this month.
LG Chem, together with China’s CATL, provides batteries for Tesla’s electrical automobiles made in Shanghai. Tesla posted document quarterly deliveries within the third quarter.
Analysts count on LG Chem’s battery enterprise to stay worthwhile within the third quarter and its mainstay petrochemicals enterprise to publish stable income.
Regardless of the rosy outlook, LG Chem shares fell 2.3% over considerations of fireplace dangers related to its battery cells for Hyundai Motor’s Kona electrical autos.
LG Chem mentioned defective battery cells weren’t the reason for fires in Kona EVs, and the precise trigger had not been decided.
Tesla’s long-term plan to supply its personal cells have harm LG Chem shares, which had rallied this yr on account of EV expectations.
LG Chem shares even have been underneath strain after it mentioned final month that it plans to separate its battery enterprise as an unbiased unit.
This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.