LG chemical's third-quarter sales of 5.4931 billion won

In the third quarter of 2022, LG Chem posted sales of 5.4931 trillion won ($9.953 billion) and operating profit of 901.2 billion won ($633 million). Compared with the same period last year, LG Chem posted sales growth of 33.8% and operating profit growth of 23.9%. Sales rose 15.8 percent and operating profit rose 2.6 percent.

Cha Dong-seok, chief financial officer of LG Chem, said, Despite the deterioration of the petrochemical market and the decline in profitability due to the global economic downturn, we achieved solid growth in our overall business performance by increasing sales and profitability in high-tech materials and new energy. "The petrochemical market is expected to gradually improve after the fourth quarter," he said. At the same time, we will continue to expand the battery material business, including cathode materials, to further expand the scale of profitability."

Petroleum chemical

Sales were 5.4931 trillion won ($3.857 billion) and operating profit was 92.6 billion won ($65.01 million). The company's profitability has declined due to high oil prices and the continued decline in demand due to global inflation. The market is expected to remain difficult in the fourth quarter due to continued sluggish global demand and increased supply. However, the market is expected to recover in the second half of this year.

Advanced materials

Sales were 2.5822 trillion won ($1.813 billion) and operating profit was 415.8 billion won ($292 million). Sales continued to grow due to expanded shipments of battery materials and rising selling prices. Despite the deterioration of the IT/ semiconductor front-end market, the proportion and profitability of the cathode material business continue to expand. Sales of cathode materials are expected to decline in the fourth quarter due to lower metal prices. However, with the increase of stable shipments, sales are still expected to maintain the growth trend.

Life science

Sales were 225.2 billion won ($158 million) and operating profit was 5.8 billion won ($40.72 billion). Although the sales of major products such as growth hormone and Eucept continued to grow, the profitability declined due to the delayed recovery of medical beauty business in China and the increase in R&D expenses. Sales are expected to increase in the fourth quarter as shipments of major products such as vaccines and growth hormone expand, and the company plans to increase R&D investment for clinical trials of new drugs worldwide.

LG's new energy

Sales were 7.6482 trillion won ($5.369 billion) and operating profit was 521.9 billion won ($366 million). With improved customer demand in Europe and North America, electric vehicle battery shipments increased, resulting in the highest quarterly sales in the third quarter. Profitability also improved due to higher selling prices driven by higher metal prices. In the fourth quarter, the company plans to expand its North American production capacity and build smart factories to accelerate its business growth in the rapidly growing North American market.

Farm Hannong

Sales were 156.6 billion won ($110 million) and operating profit was 3.4 billion won ($2.387 million). Sales and profitability improved compared to the same period last year, as exports of crop protectants such as Terrad 'or increased and global sales increased. Annual sales and profitability are expected to continue to improve in the fourth quarter due to the expansion of overseas sales of crop protectants and specialty fertilizers.