2023-10-31 00:56:11
CI of LG Chemical, an affiliate of LG Group (provided by LG Chemical)
[건설이코노미뉴스]LG Chem, one of LG Group’s affiliates, announced that it achieved business performance of ▲13.4948 trillion won in sales and ▲860.4 billion won in operating profit on a consolidated basis in the third quarter of this year.
Compared to the previous quarter, sales decreased by 5.9%, but operating profit increased by 39.3%. Compared to the same period last year, sales decreased by 3.5% and operating profit decreased by 5.6%.
Excluding LG Energy Solutions, LG Chem’s direct business performance in the third quarter was KRW 6.2777 trillion in sales and KRW 116.1 billion in operating profit.
CFO Cha Dong-seok said, “Despite difficult business conditions, we will overcome the crisis by increasing fundamental competitiveness and continue to grow through unwavering development of the three major new growth engines.”
Looking at the third quarter performance and fourth quarter outlook by business division, the petrochemical division recorded sales of KRW 4.4111 trillion and operating profit of KRW 36.6 billion.
The lagging effect (time lag in raw material input) caused by rising oil prices and high value-added products such as solar panel film materials (POE) and carbon nanotubes (CNT) continued to show solid profitability, turning the company into a surplus.
Although uncertainties such as continued high oil prices due to geopolitical risks are expected in the fourth quarter, we plan to continue efforts to improve profitability through strengthening high value-added businesses and cost reduction activities.
The advanced materials division recorded sales of KRW 1.7142 trillion and operating profit of KRW 129.3 billion. In the battery materials business, overall sales volume was maintained as the decrease in shipments to Europe was offset by the increase in shipments to the U.S., but profitability decreased due to the drop in metal prices. In the fourth quarter, the decline in metal prices is expected to continue to affect product sales and reduce sales and profitability of the battery materials business.
The life science division recorded sales of 291.4 billion won and operating profit of 15.2 billion won. Sales fell slightly compared to the previous quarter due to a decrease in overseas shipments of some products such as vaccines and fillers, but operating profit turned into surplus due to full-scale sales growth and profit improvement following the acquisition of AVEO. In the fourth quarter, sales are expected to increase due to increased shipments of major products such as diabetes and autoimmune products.
Energy Solutions recorded sales of KRW 8.2235 trillion and operating profit of KRW 731.2 billion. Sales decreased slightly compared to the previous quarter due to weak demand in the European electric vehicle market and falling metal prices, but profitability increased through efforts to strengthen product competitiveness and improve productivity and costs. Growth momentum is expected to continue in the fourth quarter, centered on the North American market.
FarmHannong recorded sales of 120.1 billion won and an operating loss of 15 billion won. Despite the expansion of overseas sales of crop protection products, sales decreased compared to the same period last year due to a decline in selling prices due to the worsening market conditions for fertilizers. Sales and profitability are expected to improve in the fourth quarter through expanded overseas sales of special fertilizers.
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