Electric Vehicle Chasm Impact... Lotte Energy Materi Turns to Loss in Q3

Recorded Operating Loss of 31.7 Billion KRW
"Limited Demand Recovery in Q4 as Well"

Lotte Energy Materials announced on the 1st that it has tentatively recorded consolidated sales of 211.4 billion KRW, an operating loss of 31.7 billion KRW, and a net profit of 6.5 billion KRW for the third quarter.

Sales decreased by 2.9% compared to the same period last year (217.7 billion KRW) due to a decline in sales volume caused by inventory adjustments by customers amid a slowdown in the electric vehicle market. The overall sales volume decline due to the slowdown in the European market also impacted sales. However, the company views the 135% surge in sales volume to North America compared to the previous year as a driver for future performance improvement.

Lotte Energy Materials 2024 Q3 Consolidated Business Performance.
[Photo by Lotte Energy Materials]

Operating profit turned to a loss as fixed costs increased due to reduced operating rates at the domestic Iksan plant and the Malaysia plant caused by inventory adjustments, along with valuation losses on inventory and the impact of exchange rate volatility in Malaysia.

For the fourth quarter, although demand recovery is expected to be limited due to inventory adjustments by European customers, the new supply to the joint venture (JV) plant of key customers in North America and the activation of the North American electric vehicle (EV) market are evaluated as positive factors. Furthermore, in 2025, with the resumption of EV subsidies in the European region, the launch of multiple EV models, mass production at key customers’ North American plants, and the start of new supply to local automakers, the sales volume of copper foil is expected to gradually recover.

Kim Yeon-seop, CEO of Lotte Energy Materials, said, "Although the market environment is difficult to predict, we will strengthen our fundamentals through technology development, further solidify our dominance in the continuously growing North American market, and respond agilely to customer demand to continuously grow as a company based on copper foil technology leadership and next-generation material leadership."

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