LG Chem Reports Q3 Operating Profit of 498.4 Billion KRW, Down 42.1% YoY

Up 22.8% Compared to the Previous Quarter

LG Chem announced on the 28th that it recorded consolidated sales of KRW 12.6704 trillion and an operating profit of KRW 498.4 billion in the third quarter.

Compared to the same period last year, sales decreased by 6.1% and operating profit decreased by 42.1%. Compared to the previous quarter, sales increased by 3% and operating profit increased by 22.8%.

Chief Financial Officer (CFO) Cha Dong-seok said, "Amid a challenging business environment, we are continuously strengthening our cost competitiveness based on our excellent process technology to create differentiated results," adding, "We will do our best to secure future growth opportunities by preparing well for growth-driving businesses along with fierce efficiency improvements."

The petrochemical division recorded sales of KRW 4.8132 trillion and an operating loss of KRW 38.2 billion. A slight loss was recorded due to temporary increases in raw material prices and freight costs, as well as the impact of exchange rate declines. In the fourth quarter, profitability improvement is expected due to cost improvements from raw material price declines and increased operating rates of newly established plants.

The advanced materials division recorded sales of KRW 1.7124 trillion and an operating profit of KRW 150.2 billion. There were slight declines in shipment volume and selling prices of battery materials, along with the impact of exchange rate fluctuations. In the fourth quarter, sales and profitability expansion are expected to be limited due to year-end inventory adjustments by customers and the seasonal off-season of electronic materials.

The life sciences division recorded sales of KRW 307.1 billion and an operating loss of KRW 900 million. Although there was strong shipment of major products such as diabetes and vaccines, a slight loss was recorded due to increased research and development (R&D) expenses.

Subsidiary Energy Solution recorded sales of KRW 6.8778 trillion and an operating profit of KRW 448.3 billion. Sales increased due to demand recovery from European customers and increased production in North America, and profitability improved due to higher operating rates from volume expansion and stabilization of metal prices. Despite customer inventory adjustments and metal price declines in the fourth quarter, volume growth is expected due to expanded battery supply for electric vehicles and energy storage systems (ESS).

Subsidiary Farm Hannong recorded sales of KRW 112.8 billion and an operating loss of KRW 19.6 billion. Although domestic sales of crop protection products slightly increased, a loss was recorded due to the discontinuation of the low-profit fertilizer chemical business.