LG Chem to post 2013 Annual Earnings
“LG Chem to post its sales to KRW 23.14 trillion and operating profit to KRW 1.74 trillion.”
1. 2013 Annual Earnings (Based on K-IFRS)
n Financial Results
Ø Sales : KRW 23.14 trillion (Down 0.5% YoY)
Ø Operating profit : KRW 1.74 trillion (Down 8.8% YoY)
Ø Net profit : KRW 1.27 trillion (Down 15.6% YoY)
n Commentary on the Results (Annual Earnings)
Ø Overall profitability has decreased due to hostile market situation and recession of frontline industries. Nevertheless, well-defended performance amid macroeconomic uncertainties and global economic slowdown.
2. Q4, 2013 Earnings (Based on K-IFRS)
Ø Sales : KRW 5.64 trillion (Down 0.7% YoY)
Ø Operating profit : KRW 316.3 billion (Down 13.1% YoY)
Ø Net profit : KRW 176.9 billion (Down 39.5% YoY)
3. 2014 Business Direction
Ø Target revenue: KRW 23.92 trillion (Up 3.4% YoY)
Ø Capital expenditures: KRW 1.95 trillion (Up 41.3% YoY)
Ø Major investments:
- Petrochemicals (Kazakhstan Project, Super Absorbent Polymer, Acrylic Acid )
- IT & Electronic Materials (LCD glass substrate, Polarizer, ITO film)
- Energy Solution (Polymer battery expansion)
4. Business Outlook in Q1, 2014
Ø (Petrochemicals) The biggest growth will come from reinforcing competitiveness of differentiated products such as SAP and SSBR, specifically aiming for higher profitability.
Ø (IT & Electronic Materials) Securing stable profitability by reducing production cost and operating additional lines of polarizer and ITO film.
Ø (Energy Solution) Strengthening shares within major customers in China and also securing new customers of automotive batteries in the global market.