LG Chem's first-quarter net profit fell 13% year-on-year

Recently, LG Chem said that the company's first-quarter net profit fell 13% year-on-year to 699.1 billion won. The company's operating profit in the first quarter also fell 22.8% year-on-year to 1.0 trillion won; sales increased 25.2% year-on-year to 14.4 trillion won. The company expects that in the second quarter, the uncertain business environment will continue, and its advanced materials and energy solutions business will continue to grow steadily.

LG Chem's petrochemical business posted an operating loss of 51 billion won in the first quarter, compared with an operating profit of 635 billion won in the same period last year. The business unit's first-quarter sales fell 23% year-on-year to 4.5 trillion won. Petrochemicals performance was negatively impacted by slowing global demand for home electronics and construction.

The company's advanced materials business operating profit rose 32% year-on-year to 203 billion won, compared with 154 billion won a year earlier. The business segment's first-quarter sales rose 67.4% year-on-year to 2.5 trillion won. The company expects sales and profitability of battery materials to weaken next quarter due to lower metal prices.

Operating profit at the company's energy solutions business more than doubled year-on-year to 633 billion won from 259 billion won a year earlier. Sales also more than doubled, from 4.3 trillion won to 8.7 trillion won.