LG Chem Announces 2Q Business Performance
■ Q2 Business Performance (Consolidated)
□ Sales: KRW 14.5415 trillion (18.8% increase QoQ)
□ Operating profit: KRW 615.6 billion (29.9% decrease QoQ)
■ Despite the continuation of difficult situations, LG Chem continues to make efforts to turn crises into new growth opportunities by improving cost competitiveness, maximizing operating system efficiency, and fostering three new growth engines
On the 27th, LG Chem announced that the company recorded a consolidated ▲sales of KRW 14.5415 trillion and ▲operating profit of KRW 615.6 billion for the second quarter of this year.
(Compared to the same period last year), sales increased by 18.8% quarter-over-quarter, but operating profit decreased by 29.9%. Excluding LG Energy Solutions, LG Chem's direct business performance in the second quarter was KRW 6.9448 trillion in sales and KRW 96.8 billion in operating profit.
A spokesperson for LG Chem said, “Although the difficult situation continues, we will continue our efforts to turn the crisis into new growth opportunities by improving cost competitiveness, maximizing operating system efficiency, and fostering three new growth engines for future growth.”
Looking at the 2nd quarter performance and 3rd quarter outlook by business division,
Petrochemicals Company recorded KRW 4.5589 trillion in sales and KRW 12.7 billion in operating loss. Although it recorded a loss due to stagnation in the petrochemical market and maintenance work on production facilities, high value-added products such as solar panel film materials (POE) and carbon nanotubes (CNT) continued to show solid profitability. In the third quarter, it will continue its efforts to improve profitability by strengthening high value-added businesses, etc.
Advanced Materials Company recorded KRW 2.2204 trillion in sales and KRW 184.6 billion in operating profit. While profitability in the battery materials business declined due to slowing growth in the European EV market and falling metal prices, sales and profitability in the IT/semiconductor materials business increased with the partial recovery of the downstream market conditions.
In the third quarter, it is expected that the sharp decline in metal prices experienced in the second quarter will be significantly reflected in product selling prices, leading to a decrease in sales and profitability for the battery materials business.
Life Sciences Company recorded KRW 316.9 billion in sales and of KRW 9.2 billion in operating loss. It achieved its highest quarterly sales through sales growth of key products such as growth hormones, diabetes medications, and kidney cancer treatments. However, it recorded a loss due to one-time expenses related to the acquisition of AVEO. In the third quarter, the positive sales trend for key products are expected to continue.
LG Energy Solutions recorded KRW 8.7735 trillion in sales and KRW 460.6 billion in operating profit. It has continued its sales growth momentum with the increased shipment mainly in the North American market, and profitability is expected to increase in the third quarter as well.
Farm Hannong recorded KRW 247.3 billion in sales and KRW 27.4 billion in operating profit. Due to the expansion of overseas sales of crop protection agents, both sales and operating profit increased compared to the same period last year. Performance is expected to decline in the third quarter due to seasonal factors; however, on an annual basis, profitability is expected to improve through the growth of the domestic and overseas crop protection agents business.