SKC 3Q Operating Profit 55.3 Billion KRW... Highest Performance Since 2015 (Update)

[Asia Economy Reporter Park Soyeon] SKC announced on the 3rd that it recorded sales of 723.7 billion KRW and an operating profit of 55.3 billion KRW in the third quarter. Due to profitability improvements across all business divisions, sales and operating profit increased by 20% and 44%, respectively, compared to the previous year. As a result of continuous business model innovation, SKC achieved the highest quarterly operating profit since the third quarter of 2015 despite adverse conditions such as COVID-19.

The third-quarter performance showed improvements in all business divisions. SK Nexilis, an investor in the copper foil business for secondary batteries, recorded sales of 103.1 billion KRW and an operating profit of 15.2 billion KRW. With the full-scale operation of the 4th plant and increased electric vehicle sales in Europe, quarterly sales exceeded 100 billion KRW for the first time. Sales are expected to increase in the fourth quarter as well, supported by favorable conditions such as rising demand for electric vehicles.

SK PIC Global, a chemical business joint venture, posted sales of 184.9 billion KRW and an operating profit of 25.3 billion KRW. Demand for industrial PO (propylene oxide) increased due to the booming automotive industry, and demand for hygienic and health-related PG (propylene glycol) remained high amid ongoing COVID-19. Favorable conditions are expected to continue in the fourth quarter with regular maintenance of regional PO manufacturers and increased industrial demand.

The Industry Materials Business Division, which produces high value-added film materials, recorded sales of 273.4 billion KRW and an operating profit of 16.9 billion KRW, showing a growth trend. As COVID-19 became normalized, sales of high value-added films for displays such as TVs and laptops increased. The China subsidiary achieved record-high performance due to economic recovery. In the fourth quarter, SKC plans to increase sales of high value-added products to prepare for uncertainties such as the US-China trade conflict.

The Semiconductor Materials Business recorded sales of 104.3 billion KRW and an operating profit of 6.3 billion KRW, showing steady growth. Sales and operating profit of ceramic components and CMP pads both increased. In the fourth quarter, SKC plans to complete the 2nd plant, which doubles production capacity compared to the existing CMP pad production facility, and commercialize new CMP pad and wet chemical products to continue the growth trend.

An SKC official said, "In the third quarter of this year, the results of business model (BM) innovation appeared, achieving the best performance since the third quarter of 2015 despite adverse conditions such as COVID-19," and added, "We will accelerate the second phase of innovation focused on mobility, semiconductors, and eco-friendliness to establish a stronger growth foundation."

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