LS Cable Asia Reports Q3 Operating Profit of 5.1 Billion KRW, Down 20% YoY

Operating Profit Soars 827% Compared to Q2 This Year... Signs of Overcoming COVID-19

[Asia Economy Reporter Ki-min Lee] LS Cable Asia announced on the 13th that its sales for the third quarter of this year are expected to reach 145.9 billion KRW, a 6% increase compared to the same period last year, while operating profit is projected to be 5.1 billion KRW, a 20% decrease.

However, operating profit increased by 827% compared to the previous quarter when COVID-19 was spreading worldwide. LS Cable Asia cited the recovery in profitability in the power distribution (medium and low voltage) sector due to the restart of power projects in the Vietnam market and the telecommunications (optical cable and UTP) sector in the global communications market as the main reasons for the performance rebound.

A company official stated, "In April and May, Korean projects inflowing through government infrastructure investment and foreign direct investment (FDI) were completely halted, significantly deteriorating the company's profitability," adding, "However, as the Vietnam market began to recover, LS Cable Asia's two production subsidiaries in Vietnam (LS-VINA, LSCV) continuously secured orders based on superior quality and cost competitiveness compared to competitors, laying the foundation for a rebound starting from the third quarter.”

Furthermore, the official expressed confidence in future performance growth, saying, “The Vietnam power market has now reached a situation where supply cannot keep up with demand, and considering the future growth potential of the Vietnam infrastructure market, stable power supply must be the foundation. Therefore, the recovery of the power market is expected to precede the full recovery of the infrastructure market after COVID-19.”