[Asia Economy Reporter Park So-yeon] LG Chem recorded the highest-ever quarterly sales and operating profit in the third quarter of this year.
LG Chem announced on the 21st that its third-quarter management performance showed sales of 7.5073 trillion KRW and operating profit of 902.1 billion KRW. This is the highest quarterly management performance in history.
Sales increased by 8.8% and operating profit by 158.7% compared to the same period last year. Compared to the previous quarter, sales rose by 8.2% and operating profit by 57.8%.
The third-quarter sales and operating profit this year represent the largest quarterly performance ever achieved by LG Chem.
The previous record was sales of 7.451 trillion KRW in the fourth quarter of last year and operating profit of 831.3 billion KRW in the first quarter of 2011.
The strong performance of the petrochemical division drove the results.
LG Chem explained that as demand for major petroleum products showed signs of recovery, the petrochemical division recorded an operating profit of 721.5 billion KRW and an operating profit margin of 20.1%, marking the highest quarterly figures ever.
The battery division recorded an operating profit of 168.8 billion KRW due to expanded supply of automotive batteries and small batteries. Sales also reached a record high of 3.1439 trillion KRW.
Due to increased suppressed demand caused by the COVID-19 pandemic, demand for high value-added synthetic resins (ABS) and polyvinyl chloride (PVC) NB latex used in home appliances and automotive interior materials increased, while raw material prices declined, significantly improving the profitability of the petrochemical division.
The battery division recorded an all-time high operating profit of 168.8 billion KRW due to expanded supply of automotive batteries and small batteries. Sales also achieved a record high of 3.1439 trillion KRW.
The launch of new electric vehicle models by major European automakers and the expansion of supply of cylindrical batteries and information technology (IT) products contributed to the performance improvement.
The advanced materials division recorded sales of 962.9 billion KRW and operating profit of 59 billion KRW due to market demand recovery in automobiles and display panels, while the life sciences division posted sales of 172.1 billion KRW and operating profit of 8.5 billion KRW. Sales increased due to expanded sales of seasonal flu vaccines and extraction reagents.
In contrast, the subsidiary Farm Hannong recorded sales of 102.1 billion KRW and an operating loss of 9.6 billion KRW.
Cha Dong-seok, Chief Financial Officer (Vice President) of LG Chem, said, "The third-quarter results are the outcome of efforts focused on key tasks such as improving internal efficiency, stabilizing cash flow, and continuing investments for the future since the beginning of the year despite the impact of COVID-19. We expect continuous improvement in performance, including sales growth and profit expansion, going forward."
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