LG Chem CEO Kim Dong-chun speaks at a recent company event in Seoul. The chemical maker reported a more than 25% year-on-year increase in second-quarter operating profit. Photo by LG Chem
SEOUL, July 31 (UPI) — South Korea’s LG Chem said Friday it posted second-quarter sales of $9.9 billion, up 19% from a year earlier, for operating profit of $419 million, up 25.8%.
The Seoul-based company attributed the solid performance to improved petrochemical margins and a turnaround at its subsidiary, LG Energy Solution, one of the world’s leading rechargeable battery manufacturers.
Chief Financial Officer Cha Dong-seok also credited higher sales of key products in the company’s advanced materials and life science businesses for supporting earnings during the April-June period.
LG Energy Solution recorded $5.3 billion in revenue and an operating income of $79 million, returning to profitability on the back of strong demand for electric vehicle batteries and increased shipments of the North American energy storage systems market.
LG Chem’s life sciences division generated revenue of $260 million and operating profit of $42 million during the past three months.
“We will continue to accelerate the transformation of our existing businesses toward higher value-added products while building a stable earnings foundation by fostering future growth areas,” Cha said in a statement.
“We will also strengthen our business portfolio to ensure it remains resilient across industry cycles,” he added, citing semiconductor and mobility materials as major growth businesses.
The share price of LG Chem rose 5.09% on the Seoul bourse on Friday, while the benchmark KOSPI jumped 17.91%. LG Chem is one of the flagship affiliates of LG Group, alongside LG Electronics and LG Display.
