SEOUL, Oct 28 (Reuters) - South Korean battery firm LG

Energy Solution (LGES) posted on Monday a 39% drop

in quarterly profit, but the result was better than analysts had

feared thanks to improved demand from some European and North

American automakers.

The company, which supplies Tesla, General Motors ( GM )

and Hyundai Motor ( HYMTF ), reported an operating

profit of 448 billion won ($322.84 million) for the

July-September period, in line with an earlier forecast.

Hit by a slump in EV demand, the result was down from a 731

billion won profit a year earlier, but beat a 374 billion won

average forecast by LSEG SmartEstimate, which is weighted toward

analysts who are more consistently accurate.

The company would have made an 18 billion won operating loss

in the quarter without a tax credit it received under the U.S.

Inflation Reduction Act, LGES said in a regulatory filing.

Revenue for the quarter fell 16% to 6.9 trillion won.

Shares of LGES were trading up 0.9% after the results,

outpacing a 0.6% rise in the benchmark KOSPI.

($1 = 1,387.6900 won)