LG Chem released its second quarter 2023 results. In the second quarter, LG Chem’s sales were 14.5415 trillion won (about 11.2 billion U.S. dollars), and its operating profit was 615.6 billion won (473 million U.S. dollars). Compared with the same period last year, sales increased by 18.8% and operating profit decreased by 29.9%. The performance does not include LG New Energy. LG Chem's sales in the second quarter were 6.9448 trillion won and operating profit was 96.8 billion won.
Petrochemical
Sales: 4.5589 trillion won, operating loss: 12.7 billion won. Despite losses due to the continued slump in the petrochemical market and production equipment maintenance, the profitability of high-value-added product groups such as solar panel film materials (POE) and carbon nanotubes (CNT) remained strong. In the third quarter, efforts will continue to improve and strengthen the profitability of high value-added businesses.
Cutting-edge materials
Sales: 2.2204 trillion won, operating profit: 184.6 billion won.
Affected by the slowdown in the growth momentum of the European electric vehicle market and the drop in metal prices, the battery material business saw a decrease in revenue, while the IT semiconductor material business recovered part of the market in the downstream market, and both sales and revenue increased.
Both sales and earnings in the battery materials business are expected to be lower in the third quarter as the effects of the metal price slump in the second quarter will be reflected in product selling prices.
Life Science
Sales: 316.9 billion won, operating loss: 9.2 billion won. The second-quarter sales hit a new high as sales of major products such as growth hormone and diabetes treatment drugs increased, as well as kidney cancer treatment agents. Sales of major products are expected to continue to grow in the third quarter.
LG New Energy
Sales: 8.7735 trillion won, operating profit: 460.6 billion won. Sales of batteries for electric vehicles increased, mainly in the North American market, and sales continued to grow. Earnings are expected to continue to expand in the third quarter.
Farm Hannong
Sales: 247.3 billion won, operating profit: 27.4 billion won. With the expansion of global sales of crop protection agents, both sales and operating profit increased compared with the same period last year. It is expected that the performance in the third quarter will decline due to seasonal effects, but the global business of crop protection agents in the whole year is expected to achieve growth and profitability will be improved.
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