Lotte Chemical 3Q Operating Profit 193.8 Billion KRW...39.3% Decrease YoY

[Asia Economy Reporter Park So-yeon] Lotte Chemical announced on the 6th that its consolidated operating profit for the third quarter of this year was tentatively estimated at 193.8 billion KRW, a 39.3% decrease compared to the same period last year.

Sales amounted to 3.0455 trillion KRW, down 21.1% from the same period last year. Net profit decreased by 31% to 147.8 billion KRW.

Lotte Chemical stated, "Demand is normalizing due to the recovery of the global economy, which had been contracted due to the impact of COVID-19," and added, "We achieved higher performance compared to the previous quarter due to continued weakness in raw material prices and an expansion of product spreads."

Within the Basic Materials Business, the Olefin Division recorded sales of 1.2186 trillion KRW and an operating profit of 79 billion KRW. The Aromatics Division posted sales of 376.1 billion KRW and an operating profit of 5.5 billion KRW. Market conditions improved mainly in the Chinese market, and profitability improved as steady demand for hygiene products such as masks and droplet barriers continued.

The Advanced Materials Business recorded sales of 863.3 billion KRW and an operating profit of 99.5 billion KRW. It showed high profitability due to the expansion of ABS product spreads driven by the global spread of untact culture and increased demand for home appliances.

Lotte Chemical Titan recorded sales of 544 billion KRW and an operating profit of 48.1 billion KRW. Demand for major products improved as local movement restrictions imposed after the outbreak of COVID-19 were lifted, and steady profitability was maintained due to strong demand for hygiene products and packaging materials.

LC USA recorded sales of 64.4 billion KRW and an operating loss of 22.3 billion KRW. It posted an operating loss due to about 50 days of factory shutdowns caused by hurricanes "Laura" and "Delta" and weak product market conditions.

Regarding the fourth quarter performance, Lotte Chemical said, "With the recovery of the global economy and the untact trend, demand for home appliances and daily necessities is expanding, and we expect to continue solid performance." It added, "We are currently planning to resume operations at the Daesan plant within the year, and we will expand specialty materials to respond to new market demand and strengthen product development to expand the plastic circular economy."

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