LS Group reaped its best-ever business performance last year by expanding its conventional mainstay businesses and new businesses on the back of LS Group Chairman Koo Ja-eun’s two-pronged business strategy.
The group is forecast to log a good business performance in the second quarter of this year.
Market consensus based on major securities companies’ forecasts, compiled by Yonhap Infomax, showed that LS Corp., the holding company of LS Group, was forecast to chalk up 6,324.4 billion won in sales and 271.1 billion won in operating profit in the second quarter of the year.
The figures represent a 53.5 percent and a 38.03 percent jump year-on-year, respectively, compared to the same period of the previous year.
During the same period, LS ELECTRIC is estimated to post an 11.6 percent year-on-year surge to 980.5 billion won in sales and a 37.77 percent jump in operating profit to 82.8 billion won.
LS Group logged 36,345.1 billion won in cumulative sales and 1,198.8 billion won in operating profit, its best-ever results, last year.
The business group is predicted to maintain growth momentum on the back of new orders by its major subsidiaries this year.
On May 1, LS Cable & System landed a 189.2 billion deal with Denmark’s Ørsted, the world’s largest offshore wind farm operator, to supply undersea cables to an offshore wind farm in Zhanghua Xian, Taiwan.
LS C&S was awarded the eight undersea cable contracts in the first phase off-shore wind farm project.
The value of the contracts LS C&S has won since 2019 amounts to about 1 trillion won cumulatively.
LS C&S also landed a 2 trillion won HVDC cable supply deal from TenneT, a state-run utilities company in the Netherlands.
The Dutch deal involves a grid linking a wind farm in the North Sea with Germany and the Netherlands.
Under the agreement, LS C&S is expected to supply 525kV-class undersea and land cables from 2026.
The cable maker saw its order backlog top a record 3.2 trillion won as the end of last year.
LS ELECTRIC is expected to receive benefits from expanding power infrastructure on the back of incentives given under the enforcement of the U.S. Inflation Reduction Act.
The company is poised to meet rising demand for power infrastructure in the United States by establishing a production center in Texas, its first in North America.
Last November, LS ELECTRIC struck a 174.6 billion won deal to supply distribution systems to Samsung Electronics’ plant in Taylor City, Texas.
LS ELECTRIC acquired MCM Engineering II, a power distribution system maker in Utah to launch a local production.
LS Group is also nurturing the battery, EV and semiconductor sectors as its future growth businesses.
LS plans to launch a project with L&F to build a joint-venture plant to produce a key raw material in cooperation for batteries.
The joint-venture will embark on production in 2025 by investing 1 trillion won.
Chmn. Koo Hits Gas to Explore Battery, EV and Semiconductor Sectors in Europe
LS Group Chairman Koo Ja-eun toured Poland on July 13 as part of a Korean business delegation accompanying President Yoon Suk-yeol on a state visit to the Eastern European country.
Chmn. Koo’s visit to Poland came three months after he went there in April.
For LS Group, Europe, including Poland, is considered a global core center in which the group produces EV battery parts and wants to explore renewable energy markets.
Chairman Koo toured EV magnet wire, battery parts and telecommunication cable plants in Poland, Germany and Serbia last April as part of his first inspection tour since he took office as LS Group chairman early this year.
Chmn. Koo, seizing new growth businesses, such as battery, EV and semiconductor sectors, is prioritizing nurturing the businesses.
LS Group is now showing an outstanding performance in the related businesses in Europe.
In particular, LS Group has an EV battery parts production operation and a telecommunication optical cable production operation in Dzierżoniów, Poland.
LS Group’s business report said LS LSEVP (LS EV Poland) saw its sales surge to 128.5 billion won last year, a 45 percent jump from 88.6 billion won in the previous year.
The plant supplies its products to major automakers in Europe.