■ Sales of KRW 5.248 trillion in the second quarter of 2024, operating loss of KRW 111.2 billion
■ Lotte Chemical, “Progressive portfolio advancement of five strategic business units of basic chemicals, advanced materials, fine chemicals, battery materials, and hydrogen energy”… “We will enhance financial soundness through securitization of accounts payable and improvement of working capital”
Lotte Chemical announced on the 8th that its provisional earnings for the second quarter of 2024 (consolidated basis) recorded sales of KRW 5.248 trillion and an operating loss of KRW 111.2 billion.
Lotte Chemical's earnings for the second quarter of 2024 are as follows.
Basic chemicals (Lotte Chemical Basic Materials Business, LC Titan, LC USA, Lotte GS Chemical) recorded sales of KRW 3.6069 trillion and an operating loss of KRW 139.2 billion. Product spreads expanded due to the entry into the seasonal peak season and positive exchange rate effects, but profitability slightly decreased due to increased opportunity loss costs such as simple maintenance and inventory valuation losses. Gradual improvement in supply and demand is expected due to a decrease in new capacity, but profitability is expected to remain flat due to delayed demand recovery and increased freight costs.
Advanced materials recorded sales of KRW 1.1344 trillion and operating profit of KRW 75.7 billion. Sales and profitability improved due to the expansion of product spreads and the effect of the rising exchange rate due to the increase in demand from the forward industry. Profitability is expected to remain flat due to the inflow of new capacity and increased shipping costs.
Lotte Fine Chemical recorded sales of KRW 422.1 billion and operating profit of KRW 17.1 billion. Sales and profitability improved due to increased sales from the expansion of chlorine-based products and green material industrial products. Sales are expected to increase due to the increase in international prices and sales volume of chlorine-based products, as well as increased sales of green material industrial products and food and pharmaceutical products.
Lotte Energy Materials recorded sales of KRW 262.7 billion and operating profit of KRW 3 billion. Despite the slowdown in the growth of the electric vehicle market, it achieved the highest sales in the quarter by diversifying its customers and expanding its M/S for strategic customers in North America. Although sales growth is expected to slow due to the decrease in demand from the forward industry and increased policy volatility, it plans to pursue portfolio diversification such as expanding global customers, diversifying applications for ESS/hybrid, and copper foil for next-generation AI accelerators.
Lotte Chemical said, “We are rapidly improving our portfolios in five strategic business units: basic chemicals, advanced materials, fine chemicals, battery materials, and hydrogen energy,” and “We will enhance our financial soundness by securitizing accounts payable and improving working capital.”