Lotte Chemical Reports 135.3 Billion KRW Operating Loss in 1Q... Deficit Narrowed Compared to Previous Quarter

Business Portfolio Restructuring... "Enhancing Operational Efficiency"

Lotte Chemical announced on the 9th that it recorded sales of 5.0861 trillion KRW and an operating loss of 135.3 billion KRW in the first quarter, showing improved profitability compared to the previous quarter.

Lotte Chemical Q1 Earnings (Provided by Lotte Chemical)

Basic Chemicals (Lotte Chemical Basic Materials Business, LC Titan, LC USA, Lotte GS Chemical) recorded sales of 3.5489 trillion KRW and an operating loss of 130.4 billion KRW. The deficit narrowed compared to the previous quarter due to improved monomer product spreads, stabilization of ethane prices, and a decrease in inventory valuation losses.

Lotte Chemical expects a recovery from the second quarter onward due to the arrival of the seasonal peak and the easing of supply burdens caused by the regional regular maintenance season.

Advanced Materials achieved sales of 1.0317 trillion KRW and an operating profit of 44.4 billion KRW. Profitability improved due to increased sales volume from customer new model launches, and it is expected that profitability will improve further with increased sales volume driven by growing demand in downstream industries.

Lotte Fine Chemical recorded sales of 399.4 billion KRW and an operating profit of 10.8 billion KRW. Although sales of green material industrial products increased due to capacity expansion, sales declined due to weakness in international prices of chlorine-based products. Lotte Fine Chemical plans to improve profitability by actively expanding sales of green material industrial products and food and pharmaceutical products.

Lotte Energy Materials posted sales and operating profit of 241.7 billion KRW and 4.3 billion KRW, respectively. Through customer diversification, it achieved the highest quarterly sales volume and revenue, increasing profit margins compared to the previous quarter. Sales growth is expected to continue due to increased sales volume in North America.

Lee Hoon-ki, CEO of Lotte Chemical, stated, "To systematically execute our strategy, we plan to reorganize our portfolio into five businesses: Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy, and operate accordingly." He added, "We have redefined strategic directions and optimized governance for each portfolio."

He continued, "We will enhance operational efficiency and manage performance centered on strategic business units to strengthen the execution power of the portfolio transformation.”

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