LG Chem to post Q3 Earnings

LG Chem to post its sales to KRW 5.87 trillion and operating profit to KRW 516.3 billion.  

1. Q3, 2013 Earnings (based on K-IFRS)

n Financial results

Ø Sales : KRW 5.87 trillion (Down 0.9% QoQ)

Ø Operating profit : KRW 516.3 billion (Up 3.0% QoQ)

Ø Net profit : KRW 352.3 billion (Down 12.1% QoQ)

2. Commentary on the results

Ø (Petrochemicals) Increased price of products contributed to the firm performance of polyolefins as well as improving overall profitability, despite the slowdown of synthetic rubber market.

Ø (IT & Electronic Materials) Achieved satisfying performance by increasing sales of highly profitable products such as 3D FPR and ITO film despite the fact that demands for TV and displays were weak while the KRW was strong.

Ø (Energy Solution) The operating profit has doubled compared to the previous quarter, thanks to the attempts to diversify applications to even power gearing tools. Expanding polymer battery production to cope with the trend of slim electronic gadgets was also another contributing factor.

3. Business Outlook in 4Q

Ø (Petrochemicals) Gradual recovery of the market expected thanks to the stable price of naphtha which will eventually settle down the spread among by-products to a satisfying level. This will also boost up the synthetic rubber price although the overall quarter may face a period of off-seasonal demand.

Ø (IT & Electronic Materials) Firm profitability will be maintained by focusing on increasing sales of differentiated products such as integral 3D polarizer and ITO film.

Ø (Energy Solution) Aims to reinforce dominant market position by strengthening shares within major customers and also securing new customers for automotive batteries and ESS.


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