SKC Q1 Operating Profit 27.4 Billion KRW... 24.3% Decrease YoY

[Asia Economy Reporter Hwang Yoon-joo] SKC announced on the 7th that its operating profit for the first quarter was 27.4 billion KRW, a 24.3% decrease compared to the same period last year. During the same period, sales increased by 9.5% to 661.1 billion KRW, and net profit rose by 274.3% to 86.1 billion KRW.

SKC stated, "Operating profit showed a temporary weakness due to seasonal off-season, demand decline caused by COVID-19, and one-time expenses, but from the second quarter, the effects of BM innovation such as the acquisition of the copper foil business will fully materialize."

By division, SK Nexilis, which produces copper foil for mobility batteries, recorded sales of 71.3 billion KRW and operating profit of 6.7 billion KRW in the first quarter of this year. Performance temporarily declined due to reduced operating rates caused by union strikes that lasted until the end of January. Since the production line normalized in mid-February, sales in March reached an all-time high, and with the new 4th factory about to start operation, it is expected to get on track from the second quarter.

SK PIC Global, which produces PO (propylene oxide) and PG (propylene glycol), recorded sales of 188.4 billion KRW and operating profit of 17.5 billion KRW. Despite one-time expenses related to the launch of a joint venture, stable performance was achieved by increased demand for PG used in disinfectants due to COVID-19 and maintained domestic sales. In the second quarter, when the impact of COVID-19 intensifies, the company plans to expand high-value-added PG customers for disinfectant use and other applications.

The Industry Materials Business, which produces high-value-added film materials, recorded sales of 255.7 billion KRW and operating profit of 8.5 billion KRW. Both sales and operating profit increased compared to the first quarter of last year as customers securing raw materials increased orders and sales of new products rose. In the second quarter, the stabilization of raw material prices is expected to have a positive impact.

The Semiconductor Materials Business recorded sales of 83.6 billion KRW and operating profit of 1.1 billion KRW. It showed a recovery in profits due to stable growth of CMP pads, expanded orders from ceramic parts customers, and facility investments. Investments by ceramic parts customers are expected to continue into the second quarter, generating stable sales.

An SKC official said, "Although the impact of COVID-19 will continue into the second quarter, we will improve performance by focusing on specialty materials," adding, "Especially, based on the results of the first BM innovation, we will steadily strengthen growth engines and continue to pursue additional BM innovations to prepare for the future."

This content was produced with the assistance of AI translation services.