The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
LG Energy Solution Ltd saw its operating profit for the third quarter tumble nearly 40% due to weak demand for electric vehicles (EVs). The South Korean battery maker reported a profit of 448.3 billion won (US$323 million) for the three months ending Sept 30, which, while slightly higher than analyst estimates of 440.3 billion won, represented a steep drop from a year earlier.
Excluding tax credits from the US Inflation Reduction Act, the company posted an operating loss of 17.7 billion won. Revenue also fell 16.4% to 6.9 trillion won, reflecting the global challenges the company faces amid the slowdown in EV demand.
Global automakers are scaling back their electric ambitions as consumer interest in EVs declines, compounded by uncertainty surrounding the upcoming US presidential election. Former President Donald Trump has threatened to scrap the Biden administration’s EV policies, further clouding the market outlook.
“Competition in the global EV market is intensifying, as macroeconomic uncertainties and geopolitical risks persist,” said LG Energy's chief financial official Lee Chang Sil. He also noted that Chinese manufacturers are ramping up exports, while LG’s key customers are increasingly turning to in-house battery production.
Looking ahead, LG Energy warned that the fourth quarter would present significant challenges, with lower metals prices and a one-off inventory adjustment expense weighing on its results. The company plans to lower capital expenditure next year, focusing only on essential investments.
To offset slowing EV demand, LG Energy is working to diversify its business portfolio and accelerate production of energy storage systems. The company aims to more than double sales by 2028 by expanding beyond EV batteries.
Despite the difficult quarter, LG Energy's stock rose 1% in Seoul trading following the earnings release, contributing to a 27% rise in the third quarter, which snapped five consecutive quarters of decline.
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