SKC Reports 835 Billion KRW in Q3 Sales, Up 43% Year-on-Year

Operating Profit 36.1 Billion KRW, Down 69% YoY
Film Business Sale to Complete Within the Year, Strengthening New Growth Businesses

[Asia Economy Reporter Jeong Dong-hoon] SKC continued its growth by recording sales of 835 billion KRW in the third quarter, an increase of 42.9% compared to the same period last year and 10.5% compared to the previous quarter. Operating profit was 36.1 billion KRW, down 69.5% year-on-year and 64.7% quarter-on-quarter.

On the 10th, SKC announced its third-quarter business performance at its headquarters in Jongno-gu, with key executives including Won Gi-don, CEO of SK PIC Global, Lee Jae-hong, CEO of SK Nexilis, Lim Eui-jun, CEO of SK PU Core, Kim Jong-woo, CEO of SKC Solmix, Choi Gap-ryong, head of SKC ESG Promotion Support Group, Choi Doo-hwan, head of Management Support Division, and Shin Jeong-hwan, head of Material Solutions Center. From the third quarter results, SKC excludes the film business division (SKC Future Materials), which is currently being sold. SKC plans to complete the sale of the film business division within this year, securing approximately 1.6 trillion KRW in additional funds to rapidly strengthen new growth engine businesses.

The secondary battery materials business centered on SK Nexilis, an investor in the copper foil business, recorded sales of 215 billion KRW and operating profit of 33.2 billion KRW. Sales increased by 22.6% and operating profit by 36.4% year-on-year, continuing its growth trend. Due to new car launches by electric vehicle manufacturers and increased demand at the end of the year, sales volume is expected to increase further in the fourth quarter. SK Nexilis plans to accelerate the establishment of a global production system by confirming expansion investment plans in North America within the year, following the groundbreaking of the Stalowa Wola plant in Poland in July.

The chemical business, centered on SK PIC Global and SK PU Core, recorded sales of 427.5 billion KRW and operating profit of 12.5 billion KRW. Although the market price of propylene oxide (PO) products remained weak, high value-added products such as propylene glycol (PG) maintained profitability by increasing sales in North America and Europe. Despite generally sluggish product market conditions in the fourth quarter, demand for PG and polyol, a raw material for polyurethane, is expected to increase, driving performance.

The semiconductor materials business, centered on SKC Solmix, recorded sales of 186.5 billion KRW and operating profit of 7.1 billion KRW. In the third quarter, it completed customer certification for blank masks, a core material in the semiconductor lithography process, and is preparing for commercial production. In the fourth quarter, when the semiconductor market downturn is expected to continue, SKC plans to defend profitability by expanding newly certified products.

SKC is also strengthening ESG (Environmental, Social, and Governance) management. In August, SK Nexilis and SKC Solmix were simultaneously selected as 'Korea's Best Job Companies' by the Ministry of Employment and Labor. SK Nexilis was selected for the second consecutive year, and SKC Solmix for the third time, recognizing their contributions to job creation. Additionally, from October to January next year, SKC announced plans to repurchase 1.89 million treasury shares, continuing efforts to enhance shareholder value.

SKC, which solidified the independence of its board by appointing an outside director as chairman for the first time in March this year, introduced the 'Board Skill Matrix (BSM)' in the third quarter to strengthen board capabilities, following the implementation of the outside director system in the second quarter. BSM is an indicator that measures and evaluates the composition, capabilities, qualifications, and diversity of the board. SKC plans to use BSM not only for board evaluations but also for future director appointments.

An SKC official said, "SKC is rapidly investing in new growth engines by completing the sale of the film business this year and consecutively breaking ground for copper foil and semiconductor glass substrate plants. We will continue innovation toward becoming a ‘global ESG material solution company’ by simultaneously expanding financial and ESG performance amid challenging economic conditions."

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