LS Electric posts record quarterly operating profit of W178.5b

LSElectric posted sales of 1.58 trillion won ($1.06 billion) and operating profit of 178.5 billion won in the second quarter of this year, the company announced Thursday.

Both figures are all-time highs on a quarterly basis, rising 32.3 percent and 64.4 percent, respectively, from the same period last year. New orders in the second quarter totaled about 2.1 trillion won, while the order backlog reached 7 trillion won — up about 1.4 trillion won quarter-on-quarter.

Growth was broad-based across all business segments, with data center power distribution and ultra-high-voltage transformer operations leading the way. Sales from ultra-high-voltage transformers jumped 91.2 percent year-on-year in the second quarter, driven by stabilizing production at the company's second ultra-high-voltage transformer factory in Busan, completed last year, which has been ramping up supply. Sales at LS Power Solution, the company's ultra-high-voltage transformer subsidiary, also rose about 39 percent year-on-year.

Among global regions, North America delivered the strongest performance, with the company generating about 400 billion won in sales from the region alone — a new quarterly regional record.

Europe, the Middle East and ASEAN also posted growth. Sales at the Spanish subsidiary climbed about 21 percent year-on-year as the company targeted grid-replacement demand in line with the renewable energy expansion trend. The Middle East subsidiary saw sales jump about 42 percent on the back of increased investment in power infrastructure. In Vietnam, sales grew about 34 percent, fueled by global companies' expanding investment in data center construction and manufacturing facility upgrades.

"Demand for power infrastructure is surging in global markets including North America, and orders for high-value-added products — from power distribution solutions to ultra-high-voltage transformers — have been increasing, enabling us to achieve record earnings," an LS Electric official said. "We will continue to generate results in future power solution businesses such as HVDC and low-voltage direct current distribution, and accelerate our push to expand global market share."