SKC Reports Operating Profit of 49.9 Billion KRW in 2Q, Up 3.52% YoY

[Asia Economy Reporter Park So-yeon] SKC announced on the 7th that it recorded an operating profit of 49.9 billion KRW and sales of 656.2 billion KRW in the second quarter of this year. These figures represent increases of 3.52% and 2.69%, respectively, compared to the same period last year.

Profitability improved across all business divisions, exceeding market consensus. The social value creation performance in 2019 reached 394 billion KRW, an increase of 13.4 billion KRW compared to the previous year.

The second-quarter results showed improvements in all business sectors. SK Nexilis, an SKC investee company, recorded sales of 76.3 billion KRW and an operating profit of 13.1 billion KRW in the mobility copper foil business. Despite the impact of COVID-19, normalization of production lines led to increases in both sales and operating profit compared to the first quarter.

In the second half of the year, growth is expected to continue amid favorable conditions such as the activation of the European electric vehicle market. SK Nexilis is proactively responding to increased demand through factory expansion.

SK PIC Global recorded sales of 163.1 billion KRW and an operating profit of 22.4 billion KRW. Although sales decreased compared to the first quarter due to the impact of COVID-19, operating profit increased by 4.9 billion KRW due to factors such as weaker raw material prices. In the second half, the company plans to actively target the changed market caused by COVID-19 by expanding new customers for PG applied to hygiene and health products.

The Industry Materials Business Division, which produces high value-added film materials, recorded sales of 229.9 billion KRW and an operating profit of 13.8 billion KRW. Profitability was improved by expanding high value-added products and continuing efforts to enhance business competitiveness, such as discontinuing the solar EVA business. In the second half, the division will focus its capabilities on expanding eco-friendly materials, a promising growth area, and increase sales of high value-added products to improve profitability.

The Semiconductor Materials Business recorded sales of 100.8 billion KRW and an operating profit of 3.9 billion KRW, showing growth. With the recovery of the semiconductor industry, sales of ceramic components and CMP pads increased, resulting in higher sales and operating profit compared to the first quarter. In the second half, the company plans to secure new customers for ceramic components and proceed with new certifications for CMP pads to expand growth momentum.

On the same day, SKC also announced the results of its 2019 social value creation measurement. SKC created a total social value of 394 billion KRW throughout last year. Business social performance, including the expansion of eco-friendly material business, increased by 17.4 billion KRW, raising the total by 13.4 billion KRW compared to 2018. SKC continuously identifies social value areas important to stakeholders and reflects them in corporate activities. Starting this year, it plans to disclose the measurement results annually in its sustainability management report.

An SKC official said, "SKC is promoting deep change through the spirit of determination, speed, and unity of its members," adding, "We will continue to grow centered on high value-added materials and expand communication with various stakeholders that make up the ‘Financial Society’ to promote SKC’s deep change."

Meanwhile, SKC announced its first-half management performance and 2019 social value creation achievements and broadcasted the event live on YouTube. Along with the live broadcast, SKC’s deep change introduction video, ‘SKC Deep Change, Now We Begin,’ was also released on YouTube. This video, introduced as a deep change learning tool on SK Group members’ self-directed capability enhancement learning platform ‘mySUNI (MaiSseoni),’ features SKC President Lee Wan-jae directly introducing SKC’s business model innovations such as strengthening the mobility materials business through the launch of SK Nexilis and establishing the global joint venture SK PIC Global.

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