SEOUL, Oct. 30 (Yonhap) — LG Chem Ltd., South Korea’s leading chemical company, reported a decrease in its third-quarter net profit of 18 percent as compared to the same period last year due to a slump in petrochemical product sales due to an economic slowdown.
The company’s net profit for the three months ended in September was 585.04 billion won (US$433 million), compared to 713.87 billion won in the prior year, as stated in a statement.
“Petrochemical product sales were weak in the recent quarter and battery materials shipments to Europe also decreased, contributing to the decline in the bottom line despite equity gains from LG Energy Solution,” a company spokesman said.
LG Energy Solution Ltd., LG Chem’s wholly owned battery unit, reported robust third-quarter earnings results last week.
Net profit for LG Energy Solution more than doubled to 420.5 billion won in the third quarter from 187.7 billion won on the back of strong demand in the United States and the U.S. government’s tax credits under the Inflation Reduction Act (IRA).
The IRA gives up to $7,500 in tax credits to electric vehicle buyers whose vehicles were assembled in North America, and made with minerals mined and processed in the U.S. or countries or regions that have free trade agreements with Washington.
LG Chem’s operating profit decreased 5.6 percent to 860.42 billion won in the third quarter from 911.38 billion won a year ago. Sales were down 3.5 percent to 13.49 trillion won from 13.98 trillion won.
From January to September, the chemical firm’s net income decreased 13 percent year-on-year to 1.92 trillion won, while operating profit dropped 18 percent to 2.28 trillion won and sales rose 13 percent to 42.11 trillion won.
LG Chem’s company logo (Yonhap)
kyongae.choi@yna.co.kr
(END)