EUR/USD 1.17375
0.126%
Gold 4722.22
0.750%
Oil 92.500
-2.301%
USD/JPY 156.804
-0.080%
GBP/USD 1.35744
0.177%
GBP/JPY 212.855
0.108%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
May 8th - U.S. job growth may have slowed in April as the boost from temporary factors such as warmer weather and striking healthcare workers returning to work faded, but this does not signify a substantial change in the labor market, with the unemployment rate expected to remain stable at 4.3%. Data is also expected to show faster wage growth last month, further reinforcing financial market expectations that the Federal Reserve will keep interest rates unchanged until 2027. A Reuters poll shows economists attribute the volatility in employment data in part to adjustments this year to the "birth-death model," which estimates the number of jobs gained or lost due to business openings and closures. Some say that the large turnover of businesses has made it difficult for the Bureau of Labor Statistics, which compiles the employment report, to estimate job creation associated with new businesses. In addition, weather, strikes, government layoffs, and significant labor force shifts caused by the Trump administrations crackdown on illegal immigration have also exacerbated the volatility. Economists recommend referring to a three-month moving average of employment data for a better understanding of the labor market. Citigroup economist Veronica Clark stated that averaging the data from recent months still shows moderate positive job growth. Given that significant changes in immigration flows have already led to a sharp decline in average job growth this year, this alone is not a cause for concern.Toyota: Toyota will work with its suppliers to deal with the U.S. tariff issue, but in the past fiscal year, the actual burden fell mainly on Toyota.According to Al Arabiya: Saudi Arabia has stated that it has not allowed other countries to use its airspace for offensive operations.JPMorgan Chase raised its target price for Airbnb (ABNB.O) from $130 to $140.According to Irans Mehr News Agency, flights between Dubai and Abu Dhabi have been suspended due to the activation of the UAEs air defense system.

LGES's Q1 Earnings Is Lower Than Predicted, Despite Increased Battery Sales to Tesla

Charlie Brooks

Apr 27, 2022 09:57

L2.png


Operating profit fell to 259 billion won ($205.01 million) from 341 billion won a year earlier, according to the South Korean battery manufacturer, which also counts General Motors Co (NYSE:GM) and Volkswagen AG as customers (OTC:VWAGY).


According to Refinitiv SmartEstimate, an average of 16 analyst estimates indicated a profit of 141 billion won.


Revenue increased by 2.1 percent year on year to 4.3 trillion won.


According to LGES, revenue growth has been hampered by "increasing raw material costs, a continuous worldwide semiconductor shortage, and supply chain disruption caused by Russia's military confrontation with Ukraine and frequent COVID lockdowns."


Additionally, it stated that it maintained a consistent operating profit margin due to strong sales of cylindrical battery cells.


The company, which also supplies batteries to electric vehicle manufacturer Lucid, announced this month that it intends to invest 1.7 trillion won in Arizona by 2024 to accommodate demand from prominent startups and other North American customers.


LGES said that it has increased its capital spending budget for this year to 7 trillion won, up more than 10% from the 6.3 trillion won disclosed in February.


LGES stated that it intends to increase yearly production capacity to around 520 gigawatt hours (GWh) of batteries by 2025, which would power approximately 7.3 million electric vehicles. By the end of this year, it intends to obtain an annual capacity of approximately 200 GWh.


LGES shares, which were spun off from LG Chem Ltd in January, were down 3.1 percent at 0023 GMT, compared to the benchmark KOSPI's 1.8 percent decline. According to analysts, institutional investors sold their LGES shares on Wednesday due to the expiration of the lock-up period.


LGES stock has fallen approximately 16% since its initial public offering, as supply chain bottlenecks caused by COVID-led lockdowns in China and fighting in Ukraine have persisted.


Tesla's first-quarter earnings exceeded Wall Street expectations last week, as the company delivered record numbers of vehicles at higher prices, and Chief Executive Elon Musk stated that the company had a fair chance of attaining 60 percent vehicle delivery increase this year.


However, experts believe LGES' second-quarter performance could be impacted by Tesla's planned shutdown of its Shanghai production in accordance with COVID-19 guidelines.


Tesla said it lost around a month of build volume at its Shanghai factory and that manufacturing has resumed at a reduced capacity, affecting second-quarter overall build and delivery volume.

Suggestion