LX Inter, 1Q Operating Profit 245.7 Billion KRW... "Record Quarterly Performance"

Sales of 4.9 Trillion Won... 34% Increase Compared to Previous Year

[Asia Economy Reporter Choi Dae-yeol] LX International announced on the 28th that its operating profit based on consolidated financial statements for the first quarter of this year reached 245.7 billion KRW, a 117% increase compared to the same period last year.

Sales amounted to 4.9181 trillion KRW, up 34% from the same period. Both sales and operating profit are the highest ever recorded. The previous highest sales were 4.5506 trillion KRW in the fourth quarter of last year, and the highest operating profit was 209.6 billion KRW in the third quarter of last year.

Pre-tax profit and net income were 301.6 billion KRW and 223.1 billion KRW respectively, increasing by 131% and 128% compared to the same period. A company official explained, "External conditions improved due to rising resource market conditions such as coal and palm oil, and increased shipping freight rates," adding, "Efforts to maximize profits, including increased production and growing external customer cargo volume, led to growth in scale and profit increases across all business divisions of resources, trading, and logistics."

The price of Indonesian coal, which averaged 42 USD per ton in the first quarter of last year, doubled to 82 USD per ton in one year. During the same period, Australian coal prices tripled from 89 USD to 264 USD per ton. Indonesian palm oil prices rose about 1.5 times from 700 USD to 1085 USD per ton in one year. Additionally, with the continued trend of high freight rates, the logistics sector also posted solid profits.

The company is transforming its business portfolio toward eco-friendly industries through successive mergers and acquisitions. It acquired Korea Glass Industry and Poseung Green Power, and last year invested in a biodegradable plastic joint production corporation with SKC and Daesang. It also invested in the development project of an eco-friendly logistics center in Busan. This year, it plans to enter the eco-friendly raw materials sector, including securing nickel assets.