LG Chem to post Q2, 2016 Earnings
“LG Chem to post its sales to KRW 5.22 trillion and operating profit to KRW 615.8 billion.”
1. Q2, 2016 Earnings (based on K-IFRS)
■ Financial results
• Sales: KRW 5.22 trillion (Up 7.0 QoQ) / KRW 5.07 trillion (Up 2.8% YoY)
• Operating profit: KRW 615.8 billion (Up 34.5% QoQ) / KRW 563.4 billion (Up 9.3% YoY)
• Net profit: KRW 385.6 billion (Up 14.0% QoQ) / KRW 352.9 billion (Up 9.3% YoY)
2. Divisional Business Results
• (Basic Materials & Chemicals) Overall profitability has improved due to stabilized feedstock price and increased product demand backed up by peak seasonal demand.
• (Energy Solution) Overall profitability has decreased due to sluggish sales of major smartphone customers in Mobile Battery business and increased future investment costs in Automotive Battery business.
• (IT & Electronic Materials) Overall profitability has decreased as the slowdown in the front industry has constantly affected a drop in the selling price of the products.
3. Business Outlook in 3Q
• (Basic Materials & Chemicals) Satisfactory performance will be maintained due to increased sales of premium products and stabilized feedstock price.
• (Energy Solution) Profitability in Mobile Battery business is expected to recover due to new products launched by major customers. Sales growth and increased volumes of newly launched products in Automotive and ESS Battery is also forecasted.
• (IT & Electronic Materials) Although improvements in performance are limited, new investments in RO filters and functional films will continue.