SKC Reports Q3 Operating Loss of 44.7 Billion KRW... "Continued Business Restructuring"

SKC posted a loss in the third quarter of this year.

On the 31st, SKC announced that it recorded consolidated sales of 550.6 billion KRW and an operating loss of 44.7 billion KRW in the third quarter. Sales decreased by 32.8% from 819.1 billion KRW in the third quarter of last year, and operating profit turned into a loss from 37.5 billion KRW during the same period. Compared to the previous quarter, sales (620.8 billion KRW) fell by 11.3%, and an operating loss (-36.0 billion KRW) continued.

Among the three businesses, the secondary battery materials business and the chemical business posted operating losses of 13.0 billion KRW and 8.9 billion KRW, respectively. The semiconductor materials business recorded an operating profit of 3.5 billion KRW, down 51% from the previous year. Sales were 176.1 billion KRW for the secondary battery materials business, 304.0 billion KRW for the chemical business, and 62.0 billion KRW for the semiconductor materials business.

Looking at the background of poor performance by business segment, the secondary battery materials business was affected by a decline in sales volume due to weak demand in Europe and rising costs, while the chemical business was impacted by weak PG (propylene glycol) spreads due to a global demand slump. The semiconductor business saw a temporary decrease in sales due to customer inventory adjustments.

SKC explained, "Earnings declined due to worsening internal and external business conditions," adding, "We are focusing on completing business model innovation and securing new growth foundations through the sale of non-core businesses, the acquisition of ISC, commercialization of silicon anode materials, and construction of a semiconductor glass substrate plant."

Choi Doohwan, SKC’s Chief Financial Officer (CFO), said, "We are steadily securing resources for future growth through rapid business restructuring," and added, "Based on this, we will diversify our profit models and drive high growth based on accumulated core technologies."