SKC Reports 81.8 Billion KRW Operating Profit in 1Q, Up 175% YoY

Photo by SKC [Image source=Yonhap News]

[Asia Economy Reporter Choi Dae-yeol] SKC announced on the 30th that its operating profit for the first quarter of this year reached 81.8 billion KRW, a 175% increase compared to the same period last year. This is the highest quarterly figure since the adoption of the International Financial Reporting Standards (IFRS) in 2012. Sales rose by about 24% to 784.6 billion KRW during the same period.

Although the first quarter is typically considered a seasonal low period, the company reported significant growth thanks to recent adjustments in its business model over the past few years. SK Nexilis, an investor in the copper foil business for secondary batteries, recorded sales of 142 billion KRW and an operating profit of 16.7 billion KRW. The company achieved its highest quarterly sales by increasing production in line with the growth of the electric vehicle market. Early operation of the Jeongeup Plant 5 in the second quarter is expected to further boost performance.

SK PIC Global, a joint venture in the chemical business, posted sales of 234.1 billion KRW and an operating profit of 56 billion KRW. The company showed strong performance as customer trust in supply stability and quality continued, following last year's shift to a high-value-added PG-centered portfolio amid the COVID-19 situation. Productivity improvements through process optimization during last year's regular maintenance also contributed to the results.

The Industrial Materials Business Division recorded sales of 260.3 billion KRW and an operating profit of 14.8 billion KRW. Despite rising raw material prices, operating profit increased by 21% compared to a year earlier due to increased demand for high-value-added films driven by new IT and mobile model launches at the beginning of the year. The company plans to continue increasing the proportion of high-value-added materials, including eco-friendly products, in the second quarter. The Semiconductor Materials Business posted sales of 106.2 billion KRW and an operating profit of 3.9 billion KRW. Sales of high-difficulty process CMP pads began in earnest, and sales of ceramic components increased, resulting in higher sales and operating profit compared to the same period last year.

The company has designated this year as the inaugural year of ESG (Environmental, Social, and Governance) management by establishing an ESG Committee under the board of directors. Activities of each committee will begin next month. Additionally, as part of its shareholder-friendly policy, SKC will establish the SKC Shareholder Rights Advisory Committee. External experts participating include former KB Asset CEO Lee Won-ki, former Korea Investment Value Asset CEO Lee Chae-won, and former Merrill Lynch Asia-Pacific Customer Management Head Lee Nam-woo.

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