SKC Reports 74.5 Billion KRW Q1 Operating Loss, "Recovery in Secondary Battery Copper Foil Performance"

Accelerating Efforts for a Performance Turnaround

SKC announced on April 30 that its consolidated operating loss for the first quarter of this year was provisionally tallied at 74.5 billion KRW, a 2.9% increase compared to the same period last year.

SKC Headquarters View. Provided by SKC

Sales reached 438.5 billion KRW, marking a 9.9% increase.

By business segment, in the secondary battery materials division, the copper foil business saw first-quarter sales volume rise by approximately 8% year-on-year, driven by increased demand for copper foil used in electric vehicles. Sales volume in the North American market grew by 149% compared to the same period last year, leading to improved performance. In addition, the operating loss was reduced by 18% quarter-on-quarter, thanks to a significant increase in the operating rate at the Malaysian plant.

In the semiconductor materials division, the test socket business experienced a temporary dip in sales due to adjustments in customers' research and development and mass production schedules, resulting in decreased sales of test sockets for non-memory applications. However, the operating margin remained stable at around 20%. In the chemical business, despite a weak spread for styrene monomer (SM) products, stable sales of the main product, PG, in high value-added markets in North America and Europe led to an increase in sales compared to the previous quarter.

SKC plans to focus this year on improving profitability in the secondary battery materials business, achieving stable sales growth in the semiconductor test socket business, and commercializing glass substrates. SKC stated, "In the secondary battery materials business, the trend of increasing sales is expected to continue from the second quarter, driven by higher operating rates at the North American plants of major customers. In the second quarter, supply contracts with multiple global battery customers are scheduled to be finalized, and profitability is expected to gain further momentum as full-scale production at the Malaysian plant begins."

For the semiconductor materials business, sales volume is expected to increase from the second quarter, particularly among North American customers, and orders for research and development (R&D) from major big tech customers are set to resume, accelerating sales growth. Additionally, the payment of U.S. semiconductor law production subsidies for Absolix is also scheduled to proceed within the second quarter.

An SKC official said, "The sales recovery in the secondary battery copper foil business has become more apparent, and preparations for the stable performance of the test socket business and the commercialization of glass substrates are progressing without any setbacks. In addition to rebuilding the fundamentals of our existing businesses, we will accelerate our efforts to make the results of our new businesses visible and achieve a turnaround in performance."