LG Chem to post Q3, 2016 Earnings
“LG Chem to post its sales to KRW 5.05 trillion and operating profit to KRW 460.9 billion.”
1. Q3, 2016 Earnings (based on K-IFRS)
■ Financial results
> Sales: KRW 5.05 trillion (Down 3.2% QoQ) / KRW 5.18 trillion (Down 2.4% YoY)
> Operating profit: KRW 460.9 billion (Down 24.7% QoQ) / KRW 546.3 billion (Down 15.6% YoY)
> Net Income: 298.9 billion (Down 20.4% QoQ) / KRW 342.4 billion (Down 12.7% YoY)
2. Divisional Business Results
> (Basic Materials & Chemicals) Strong spreads maintained by intensive T/A (Turn Around) in Asia. Nevertheless, overall profitability slightly declined due to
customers’ fewer working days in vacation season and stronger KRW in 3Q.
> (Energy Solution) Profitability improved thanks to sales increase in Mobile Battery for smartphones and new application for cylindrical type.
Sales of Automotive Battery for new 2nd generation EV models and the sales of ESS Battery also increased.
> (IT & Electronic Materials) Effect of internal cost-cut activities was limited due to increased raw material costs led by strong JPY.
3. Business Outlook in 4Q
> (Basic Materials & Chemicals) Despite weak seasonal demand due to customers’ inventory adjustment by year-end, healthy profitability will continue
based on naphtha price stabilization, solid demand in ABS/EP and PVC.
> (Energy Solution) Change in business structure of Mobile Battery focusing on new application will be accelerated; earnings will improve based on significant
sales growth of ESS battery and volume growth of automotive battery driven by launch of new 2nd generation EV models.
> (IT & Electronic Materials) Profitability improvement of existing business and fast development of RO filter/ new functional film businesses will continue.