Semiconductor Test Solution Investor ISC Drives Performance
SKC reduced its deficit compared to the first quarter despite sluggish performance in the secondary battery materials business, thanks to improved results in the semiconductor materials business.
On the 1st, SKC announced that its sales in the second quarter reached 472.7 billion KRW, with an operating loss of 62.7 billion KRW. Compared to the same period last year, sales increased by 4.1%, but the scale of operating loss expanded. Compared to the previous quarter, sales and operating loss improved by 13.8% and 17.7%, respectively.
The secondary battery materials business recorded sales of 85.8 billion KRW and an operating loss of 37.4 billion KRW. Although sales volume declined due to front-end demand slowdown caused by the electric vehicle chasm (temporary demand dip), the deficit narrowed compared to the previous quarter due to cost structure improvements such as inventory reduction. The company expects profitability to improve in the second half as the production and sales share in Malaysia gradually expands.
The semiconductor materials business achieved sales of 67.3 billion KRW and an operating profit of 15.8 billion KRW. The test solution investor ISC recorded sales close to 50 billion KRW, the highest since the second quarter of 2022, driving the semiconductor materials business performance. In particular, with the spread of artificial intelligence (AI) and increased demand for non-memory mass production, sales of high value-added products expanded, resulting in an operating profit margin of 30%. SK Enpulse’s sales increased by 26% compared to the previous quarter. For the core product CMP pads, profitability turned positive due to normalization of manufacturing costs.
The chemical business recorded sales of 317.5 billion KRW and an operating loss of 5.3 billion KRW. Operating losses decreased by 10 billion KRW compared to the previous quarter, turning EBITDA positive in the second quarter. Especially, sales increased by 17% compared to the previous quarter due to an expanded sales ratio of high value-added products such as dipropylene glycol (DPG). Additionally, as part of SK Group’s management improvement efforts this year, ongoing operational improvement (O/I) activities have been extended to company-wide cost reduction efforts, increasing profits.
An SKC official said, "Although we are experiencing expected growing pains due to continuous business rebalancing, we have sufficient resilience to endure through proactive asset securitization," adding, "In the second half, we will focus on strengthening financial soundness to secure momentum for future business growth."
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