Lotte Chemical Turns to Loss in Q3 Amid Global Demand Decline

[Asia Economy Reporter Oh Hyung-gil] Lotte Chemical recorded an operating loss in the third quarter due to sluggishness in the basic materials sector caused by decreased demand.

On the 8th, Lotte Chemical announced that it posted a consolidated operating loss of 423.9 billion KRW in the third quarter, turning to a deficit. Sales amounted to 5.6829 trillion KRW, a 27.9% increase compared to the same period last year.

Lotte Chemical explained, "Although sales increased by 3.1% compared to the second quarter, profitability declined due to the negative lagging effect caused by the global demand decrease and the drop in the price of raw material naphtha."

By business segment, the basic materials business recorded sales of 3.5874 trillion KRW and an operating loss of 277 billion KRW. Sales increased from the previous quarter due to the completion of scheduled maintenance at the Yeosu plant and the operation of new facilities, but profitability was low as the lagging effect from the raw material price decline was reflected and the spread worsened due to the global product demand decrease.

The advanced materials business achieved sales of 1.1613 trillion KRW and an operating profit of 12.1 billion KRW, while Lotte Chemical Titan, which recorded sales of 725.6 billion KRW, posted an operating loss of 130.8 billion KRW. Sales and profitability declined due to adjustments in operating rates caused by worsening market conditions and oversupply in the Southeast Asian market.

LC USA recorded sales of 166.8 billion KRW and an operating loss of 30.6 billion KRW.

A Lotte Chemical official said, "In the fourth quarter, a difficult business environment is expected due to the global economic recession and weak demand in the upstream industries," but added, "Profitability will improve significantly due to the downward stabilization of raw material prices," and stated, "We will actively pursue expansion of a high value-added product portfolio and business structure transformation to secure stable profitability even amid volatile market conditions."

He continued, "Investments in new businesses such as hydrogen energy, battery materials, recycling, and bio-plastics to achieve our future vision will proceed swiftly and without setbacks."

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