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SEOUL, July 28 (Reuters) - SK Innovation Co Ltd (096770.KS), owner of South Korea's top refiner SK Energy, said on Friday it expects refining margins to gradually improve in the second half thanks to favourable market conditions backed by solid travel season demand. Analysts said SK Innovation's refining business had been hit by declines in refining margins and oil prices, while its battery business had continued generating losses due to costs related to its newly set up U.S. battery plants. SK Innovation's battery unit SK On, which was split off last year, accounted for about 20% of the company's revenue in the second quarter. SK Innovation said it expects its battery unit's profitability to improve in the second half thanks to the U.S. tax subsidies from the Inflation Reduction Act. Shares of SK Innovation were trading down 0.9%, versus benchmark KOSPI's (.KS11) 0.5% fall at 0210 GMT.

Persons: Refinitiv SmartEstimate, Kim Kyunghoon, 1,282.8300, Heekyong Yang, Joyce Lee, Jamie Freed, Kim Coghill Organizations: SK Innovation Co, refiner SK Energy, Analysts, SK Innovation's, SK, SK Innovation, Ford Motor, Hyundai Motor, Chief, SK On's, LG Energy, Thomson Locations: SEOUL, North America, Europe

☆ LG Energy Solution Q2 profit jumps 136% on strong demand for EV batteries
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +1 min

SEOUL, July 27 (Reuters) - South Korea's LG Energy Solution Ltd (373220.KS) on Thursday posted a 136% jump in quarterly profit, helped by rising demand for electric vehicle (EV) batteries. The company, which supplies General Motors Co (GM.N), Tesla Inc (TSLA.O), and others, reported an operating profit of 461 billion won ($362.68 million) for the April-June period, versus 196 billion won a year earlier. That compared with the company's estimate of 612 billion won announced earlier this month and an average analyst forecast of 641 billion won compiled by Refinitiv SmartEstimate. LGES said it had reflected one-off cost of 151 billion won for General Motors' Bolt electric vehicle recall. Revenue for the quarter rose 73% to 8.8 trillion won, LG Energy said in a regulatory filing.

Persons: Refinitiv SmartEstimate, LGES, 1,271.1000, Heekyong Yang, Jihoon Lee, Shri Navaratnam Organizations: Korea's LG Energy Solution, General Motors Co, Tesla Inc, General Motors, Revenue, LG Energy, Thomson Locations: SEOUL

The company, which supplies General Motors Co (GM.N), Tesla Inc (TSLA.O) and others, warned it faces weaker EV demand in Europe and China than previously expected. The U.S. is the only market where demand forecasts have not been cut, the company said. LGES reported an operating profit of 461 billion won ($363 million) for the April-June period, up from 196 billion won a year earlier, but that was far below the company's estimate of 612 billion won and an average analyst forecast of 641 billion won compiled by Refinitiv SmartEstimate. "LGES' comment on sluggish EV demand in Europe, where it has major customers like Volkswagen and Renault, seems to be affecting the company's share price," said Kang Dong-jin, an analyst at Hyundai Motor Securities. Revenue for the quarter rose 73% to 8.8 trillion won, LG Energy said in a regulatory filing.

Persons: bln, Lee Chang, LGES, Refinitiv SmartEstimate, Jang Seungkwon, Kang Dong, 1,271.1000, Heekyong Yang, Jihoon Lee, Hyunsu Yim, Shri Navaratnam, Sonali Paul Organizations: GM Bolt, Korea's LG Energy Solution, General Motors, General Motors Co, Tesla Inc, sil, Volkswagen, Renault, Hyundai Motor Securities, Revenue, LG Energy, Thomson Locations: SEOUL, Europe, China, U.S

[1/2] A Hyundai Kona vehicle is unveiled at the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. PERFORMANCEHyundai said vehicle sales rose 8.5% to 1.06 million units in the second quarter, with EV sales soaring 47% to nearly 78,000 units. In the United States, Hyundai's biggest market, sales of green energy cars that include EVs and plug-in hybrids more than doubled to 46,000 units. Overall vehicle sales in the U.S. grew 14% to 225,000 units, led by sedans, while in South Korea, its second-biggest market, sales rose 13% to 206,000 units. Hyundai said last month it planned to boost EV production in the United States to three-quarters of its total production there by 2030 from just 0.7% now.

Persons: Andrew Kelly, Elon Musk, Kim Jinwoo, Zayong Koo, Refinitiv SmartEstimate, 1,279.1700, Heekyong Yang, Miyoung Kim, Jacqueline Wong Organizations: Hyundai, New York, REUTERS, Kia Corp, Korea Investment & Securities, EV, Thomson Locations: Manhattan , New York City, U.S, SEOUL, KS, United States, North America, South Korea

LG Display expects "a rise in demand for panels" as stockpiles of display panels have fallen during the first half of the year, CFO Sung-hyun Kim said. The second-quarter result was in line with a forecast of an 889 billion won loss from 16 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. Factory run-rates for organic light-emitting diode (OLED) displays used in high-end televisions remained relatively low due to weak sales in Europe, resulting in the poor performance in the second quarter, analysts said. Mobile display panel orders are concentrated in the second half of the year, ahead of the holiday season. However, the initial supply volume is unlikely to significantly impact the company's financials in the third quarter, analysts said.

Persons: Sung, Kim, Refinitiv SmartEstimate, Joyce Lee, Tom Hogue Organizations: LG, Apple Inc, Revenue, LG Display, Apple, Samsung Electronics, Reuters, Thomson Locations: SEOUL, KS, Europe

SEOUL, July 26 (Reuters) - South Korea's SK Hynix (000660.KS) on Wednesday posted a worse-than-expected quarterly operating loss on weak memory chip pricing and demand, but said the market was beginning to recover from a deep downturn. In particular, memory chip demand from corporate buyers and gaming personal computers is expected to increase in the second half of the year versus the first, the world's second-biggest memory chip maker said in a statement. This compared with expectations for a 2.7 trillion won operating loss, according to 22 analyst views compiled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. SK Hynix has reported losses each quarter since the fourth quarter of 2022, although the June quarter loss narrowed from a record of 3.4 trillion won loss in the March quarter. A boom in artificial intelligence, however, helped SK Hynix boost sales of high-end DRAM chips in the second quarter and narrow losses from the previous quarter.

Persons: Refinitiv SmartEstimate, 1,274.1300, Joyce Lee, Heekyong Yang, Christopher Cushing, Jamie Freed Organizations: Korea's SK Hynix, SK Hynix, Revenue, Thomson Locations: SEOUL

The world's largest memory chip and smartphone maker estimated its operating profit fell to 600 billion won ($459 million) in April-June, from 14.1 trillion won a year earlier in a short preliminary earnings statement. It would be Samsung's lowest profit for any quarter since a 590 billion won profit in the first quarter of 2009, according to company data. Shares in Samsung fell 1.4% in early morning trade, underperforming a 0.6% drop in the wider market (.KS11). In the January-March quarter, the company reported a whopping 4.58 trillion won loss in its chip business as memory chip prices fell further and its inventory values were slashed. Revenue in April to June likely fell 22% from the same period a year earlier to 60 trillion won, Samsung said in the statement.

Persons: Chris Helgren, Refinitiv, Greg Roh, 1,307.6700, Joyce Lee, Heekyong Yang, Shri Navaratnam, Sonali Paul Organizations: Samsung Electronics, REUTERS, Samsung Electronics Co, Samsung, Hyundai Motor Securities, Revenue, Thomson Locations: Manhattan, New York City, U.S, SEOUL, KS

☆ Samsung estimates profits plunged 96% in the second quarter
▼ + stars: | 2023-07-07 | by ( Sheila Chiang | ) www.cnbc.com time to read: +1 min

Samsung Electronics said it expects a 96% profit plunge in the second quarter of 2023 as weak demand for memory chips persists. The world's largest dynamic random-access chip maker estimates operating profit in the quarter from April to June to be 600 billion Korean won ($459 million), down from 14.1 trillion Korean won in the same period last year. This would be the company's lowest quarterly profit since the 590 billion won recorded in the first quarter of 2009, according to the company's past earnings data. The second-quarter profit forecast is largely in line with analysts' expectations for 555 billion Korean won, Reuters reported, citing a Refinitiv SmartEstimate. Samsung also estimated revenue in the second quarter to be 63.75 trillion Korean won, down 17.4% from 77.2 trillion Korean won a year ago.

Organizations: Samsung, Samsung Electronics, Reuters Locations: Seoul

☆ Samsung flags 96% drop in quarterly profit as chip glut drags on
▼ + stars: | 2023-07-06 | by ( ) edition.cnn.com time to read: +3 min

It would be Samsung’s lowest profit for any quarter since a 590 billion won profit in the first quarter of 2009, according to company data. Shares in Samsung (SSNLF) fell 1.4% in early morning trade, underperforming a 0.6% drop in the wider market. In the January to March quarter, the company reported a whopping 4.58 trillion won loss in its chip business as memory chip prices fell further and its inventory values were slashed. But in the second quarter, losses in Samsung’s memory chip business likely shrank due to more sales of DRAM chips — used in PCs, mobile phones and servers — analysts said. Revenue in April to June likely fell 22% from the same period a year earlier to 60 trillion won, Samsung said in the statement.

Persons: Refinitiv, ”, Kang, Greg Roh Organizations: Samsung Electronics, Samsung, Daishin Securities, Hyundai Motor Securities, ”, Apple Locations: Seoul

☆ Samsung profit likely lowest in more than 14 years as chip glut persists
▼ + stars: | 2023-07-05 | by ( Joyce Lee | ) www.reuters.com time to read: +2 min

SEOUL, July 6 (Reuters) - Samsung Electronics' (005930.KS) June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year. This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed. Despite the current downturn, Samsung is working to increase its share of chip demand from the exploding field of artificial intelligence (AI), such as with high bandwidth memory (HBM) and chip contract manufacturing, they said.

Persons: 1,298.7800, Joyce Lee, Sonali Paul Organizations: Samsung Electronics, Samsung, Apple, Thomson Locations: SEOUL, KS, Seoul

☆ Volkswagen sees growing competition ahead as revenue jumps on Europe, US
▼ + stars: | 2023-05-04 | by ( Victoria Waldersee | ) www.reuters.com time to read: +2 min

Next is debuted at an event ahead of the Shanghai Auto Show, in Shanghai, China April 17, 2023. "Competition will intensify with more chips and more availability," Antlitz said on a media call after the results. Volkswagen's revenue for the quarter was 76 billion euros ($84.22 billion). Operating profit fell to 5.7 billion euros from 8 billion last year, but still beat expectations of five analysts polled by Refinitiv SmartEstimate for 5.48 billion. Excluding the valuation effect from commodity hedging, operating profit rose by 35% to 7.1 billion euros, yielding a margin of 9.3%.

☆ Volkswagen revenue jumps on growth in Europe, North America
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Aly SongBERLIN, May 4 (Reuters) - Volkswagen (VOWG_p.DE) posted a 21.5% gain in first-quarter revenue on Thursday, boosted by higher prices and strong growth in Europe and North America, but operating profit declined from last year when the period benefited from commodity hedging. Revenue for the quarter was 76 billion euros ($84.22 billion). Operating profit fell to 5.7 billion euros from 8 billion euros last year, but still beat expectations of five analysts polled by Refinitiv SmartEstimate of 5.48 billion euros. Excluding the valuation effect from commodity hedging, operating profit rose by 35% to 7.1 billion euros, yielding a margin of 9.3%. Volkswagen attributed the rise in group revenue largely to strong growth in Europe and North America, and said its order book in western Europe totalled 1.8 million vehicles, including 260,000 battery-electric cars.

The company did not specify how much it expects its second-quarter refining margin, a key profit metric for refiners, to be. The company posted operating profit of 375 billion won ($281.6 million) for the first quarter ended March, versus 1.6 trillion won a year earlier. In March, Ford Motor, which uses batteries from SK On, recalled 18 electric trucks due to a battery cell manufacturing defect. SK On currently has battery joint ventures with Ford and Hyundai Motor Group in the United States. Shares of SK Innovation were trading up 0.5% in morning trade, versus a 0.3% fall in the broader KOSPI index (.KS11).

☆ LG Display posts 4th straight quarterly loss on weak gadget demand
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

SEOUL, April 26 (Reuters) - South Korean display panel maker LG Display (034220.KS) on Wednesday posted its fourth straight quarterly loss, trailing estimates, as global demand for devices like computers and monitors remained depressed amid an uncertain economic climate. LG Display, an Apple Inc (AAPL.O) supplier, posted a 1.1 trillion won ($822.59 million) operating loss for the January-March quarter, versus a profit of 38 billion won a year earlier. The result missed a forecast of a 660 billion won loss from 18 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. Revenue slumped 32% to 4.4 trillion won, LG Display said. Shares in LG Display widened losses, falling 4% after the results announcement, versus a 0.2% drop in the wider market (.KS11).

[1/2] Electric power transmission pylon miniatures and LG Energy Solution logo are seen in this illustration taken, December 9, 2022. LG Energy Solution (LGES) reported an operating profit of 633 billion won ($472.6 million) for the January-March period, up 145% from 259 billion won a year earlier. When asked about rival Chinese battery makers' efforts to enter the U.S. market, LGES Chief Financial Officer Lee Chang-sil said the company would maintain its competitive position in the U.S. LG Energy Solution's revenue for the quarter doubled to 8.7 trillion won, LG Energy said in a regulatory filing. Shares of LG Energy Solution (LGES), carved out of LG Chem Ltd (051910.KS) last year, rose as much as 2.4% in morning trade, outpacing a flat broader KOSPI market (.KS11).

☆ LG Energy Solution Q1 profit more than doubles, in line with forecast
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

SEOUL, April 26 (Reuters) - South Korea's LG Energy Solution (373220.KS) on Wednesday posted a 145% jump in quarterly profit, as the battery maker factored in subsidies from the U.S. Inflation Reduction Act and solid sales of electric vehicles (EVs) in U.S. and European markets. The company, which supplies Tesla Inc (TSLA.O), General Motors Co (GM.N) and others, reported an operating profit of 633 billion won ($472.6 million) for the January-March period, versus 259 billion won a year earlier. That compared with an average analyst forecast of 633 billion won compiled by Refinitiv SmartEstimate. Revenue for the quarter rose 101% to 8.7 trillion won, LG Energy said in a regulatory filing. Shares of LG Energy Solution was trading up 0.7%, versus benchmark KOSPI's (.KS11) 0.1% rise as of 0044 GMT.

Hyundai and partner SK On, a battery unit of SK Innovation Co Ltd (096770.KS), will set up a new battery manufacturing plant in the state of Georgia, the companies said, formalising an earlier provisional agreement. Accompanying Yoon on the trip are top executives of some of South Korea's biggest companies, including Hyundai Motor Group Executive Chair Euisun Chung. Rivals General Motors Co (GM.N) and Samsung SDI (006400.KS) said they would invest over $3 billion to build a joint venture EV battery manufacturing plant in the United States. That compared with a Refinitiv SmartEstimate for first-quarter profit of 2.3 trillion won from 16 analysts. Hyundai and Kia cars are competitive in the U.S., based on their prices and a favourable exchange rate, he added.

The firm's loss widened as a global economic slowdown worsened a memory chip glut during the first quarter, prompting sluggish demand and falling prices, SK Hynix said. However, "we expect revenue to rebound in the second quarter after bottoming out in the first, driven by a gradual increase in sales volume," SK Hynix said. Such cuts will reduce inventory across the industry and improve market conditions from the current quarter, SK Hynix said. The loss is the biggest since SK Group acquired Hynix in 2012, and is the second in a row after the fourth quarter's 1.9 trillion won loss. SK Hynix shares traded up 2.1% versus a 0.2% decline in the wider market (.KS11), after the firm flagged a market rebound.

☆ Samsung Electronics says first-quarter profit likely plunged 96% as chip glut slashes prices
▼ + stars: | 2023-04-07 | by ( ) www.cnbc.com time to read: +1 min

A man walks past an ad for the Samsung Galaxy Z Flip4 smartphone at the company's Seocho building in Seoul on Jan. 31, 2023. Samsung Electronics reported a likely 96% plunge in first-quarter operating profit on Friday, worse than analysts had forecast, as a chip glut worsened and buyers slowed purchases amid a global economic slowdown. The world's largest memory chip and TV maker estimated its operating profit fell to 600 billion won ($455.50 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. The profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

☆ Samsung to cut chip production after posting lowest profit in 14 years
▼ + stars: | 2023-04-06 | by ( ) edition.cnn.com time to read: +2 min

Seoul Reuters —Samsung Electronics said on Friday it would make a “meaningful” cut to chip production after flagging a worse-than-expected 96% plunge in quarterly operating profit, as a sharp downturn in the global semiconductor market worsens. Samsung (SSNLF) estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data. Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

Samsung estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. The production cut signal is unusually strong for Samsung, which previously said it would make small adjustments like pauses for refurbishing production lines but not a full-blown cut. The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data. Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

☆ Samsung quarterly profit set to hit 14-year low amid chip glut
▼ + stars: | 2023-04-04 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

Samsung, the world's biggest maker of memory chips, TVs and smartphones as of 2022, is a bellwether for global consumption trends. Operating profit likely fell to 1.08 trillion won in the quarter ended March 31, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. That is lowest since a 590 billion won profit in the first quarter of 2009, according to company data, and compares with an operating profit of 14.12 trillion won last year. In February, Samsung Electronics said it planned to borrow 20 trillion won from unit Samsung Display to use as operational funds until August 2025. Operating profit at Samsung's mobile business likely fell by 9% to 3.46 trillion won in the March quarter, an average of seven analyst estimates showed.

☆ BMW hits earnings target helped by pricing, China consolidation
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

BERLIN, March 9 (Reuters) - BMW's (BMWG.DE) core carmaking business hit its 2022 earnings target, the company said on Thursday, helped by strong pricing and consolidation of its China joint venture. Group revenue rose 28% to 142.6 billion euros ($150.66 billion) versus a Refinitiv SmartEstimate of 141.6 billion. Its autos business reported an 8.6% margin on earnings before interest and taxes (EBIT) of 10.6 billion euros and cash flow of 11.1 billion euros. Almost half of the latter came from a cash contribution from Chinese joint venture BMW Brilliance Automotive (BBA). BMW said last February it would pay 3.7 billion euros to take majority control of BBA after securing the necessary licence from Beijing, increasing its stake to 75% from 50%.

[1/2] Memory chips by South Korean semiconductor supplier SK Hynix are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. SK Hynix flagged lower chip prices in the current quarter. For the fourth quarter ended December, SK Hynix swung to a worse-than-expected 1.7 trillion won ($1.38 billion) operating loss, from 4.2 trillion won profit a year earlier. Analysts had expected a 1.3 trillion won operating loss, according to Refinitiv SmartEstimate. On its earnings call, SK Hynix said it will focus its resources on advanced chips to prepare for a market upturn in 2024.

"We engaged in intense production adjustment in the fourth quarter," Kim Sung-hyun, CFO of LG Display said in an earnings call. It flagged investments of only about 3 trillion won this year, compared to 5.2 trillion won in 2022, and said it will conservatively maintain existing production. Shares in LG Display reversed early losses, jumping 4.1% in afternoon trade versus a 1% rise in the wider market (.KS11). It missed an average forecast of a 797 billion won loss from 10 analysts polled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate. A continuous decline in mid-sized panel prices and efforts to control inventory and reduce factory operations caused the loss, LG Display said.

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