LG Chem Reports Q2 Operating Profit of 615.6 Billion KRW, Down 29.9% YoY

Sales reached 14.5415 trillion KRW, an 18.8% increase
Petrochemicals posted a 12.7 billion KRW loss
Advanced materials operating profit at 184.6 billion KRW

LG Chem announced on the 27th that it achieved consolidated sales of KRW 14.5415 trillion and an operating profit of KRW 615.6 billion in the second quarter of this year. Compared to the previous year, sales increased by 18.8%, but operating profit decreased by 29.9%.

An LG Chem official stated, "The difficult situation continues," but added, "We will turn the crisis into a new growth opportunity by enhancing cost competitiveness, maximizing operational efficiency, and fostering three major new growth businesses for future growth." LG Chem's direct business performance in the second quarter, excluding LG Energy Solution and others, recorded sales of KRW 6.9448 trillion and an operating profit of KRW 96.8 billion.

By business division, the petrochemical sector posted a loss of KRW 12.7 billion due to sluggish petrochemical market conditions and maintenance work on production facilities. Sales amounted to KRW 4.5589 trillion. High value-added product groups such as solar panel film materials (POE) and carbon nanotubes (CNT) maintained solid profitability.

LG Twin Tower, Yeongdeungpo-gu, Seoul
[Photo by LG Chem]

The advanced materials division recorded sales of KRW 2.2204 trillion and an operating profit of KRW 184.6 billion. The battery materials business saw decreased profitability due to a slowdown in the European electric vehicle market growth and a drop in metal prices. In the third quarter, as the metal prices that plummeted in the second quarter are fully reflected in product prices, sales and profitability of the battery materials business are expected to decline further. The IT and semiconductor materials business saw increased sales and profitability as the upstream market conditions partially recovered.

The life sciences division recorded its highest quarterly sales of KRW 316.9 billion, thanks to sales growth of key products such as growth hormones, diabetes treatments, and kidney cancer treatments. However, it posted a loss of KRW 9.2 billion due to one-time costs following the acquisition of AVEO.

LG Energy Solution recorded sales of KRW 8.7735 trillion and an operating profit of KRW 460.6 billion. Sales growth continued as shipments increased mainly in the North American market, and profitability expansion is expected in the third quarter as well.

Farm Hannong posted sales of KRW 247.3 billion and an operating profit of KRW 27.4 billion. Sales and operating profit increased compared to the same period last year due to expanded overseas sales of crop protection products. Although performance is expected to decline in the third quarter due to seasonal factors, profitability is expected to improve annually as domestic and overseas crop protection businesses grow.

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