Q3 2024 LG Chem Ltd Earnings Call Transcript
Key Points
- LG Chem Ltd (XKRX:051910) reported a quarter-over-quarter increase in sales to KRW12,670 billion and an operating profit of KRW498 billion, indicating improved profitability.
- The Energy Solutions division saw a significant increase in sales and operating profit, driven by increased supply volumes to European customers and stable metal prices.
- The company completed the sale of its polarizer material business, significantly boosting non-operating income.
- LG Chem Ltd (XKRX:051910) is actively fostering new businesses based on eco-friendly materials, including the commissioning of a pyrolysis oil plant and preparation for a joint venture for next-generation bio-oil.
- The company is focusing on expanding its external customer base for cathode materials, particularly in North America, to prepare for future growth.
- The petrochemical division recorded an operating loss of KRW338 billion due to temporary increases in raw material costs and currency depreciation.
- Advanced materials sales and profitability are expected to decline in Q4 due to year-end inventory adjustments and a seasonal off-peak period.
- The life sciences division recorded an operating loss due to increased R&D costs, and profitability improvements are limited by anticipated rising R&D expenses.
- FarmHannong experienced a decline in sales and profitability year-over-year due to withdrawal from the low-margin fertilizer chemical business.
- The company is facing heightened concerns about uncertainties due to geopolitical risks, a slowdown in global economic recovery, and further declines in metal prices.
Good afternoon. We will now start LG Chem's 2024 third-quarter earnings conference call. This is Hyeon Seok Yoon, Head of IR at LG Chem. Thank you for taking interest in LG Chem and taking the time to join us today in the midst of your busy schedules.
We will begin with a brief overview of the 2024 Q3 earnings performance followed by the CFO presentation highlighting the key developments, we will also talk about future strategies and following the presentation, we will open the floor to questions. (Operator Instructions)
For those with web access, the materials presented during this conference call can be viewed online and are also available for download from our corporate website.
Let's begin today's call with the introduction of the management team. We have CFO, Dong Seok Cha; Junho Lee, in-charge of company's business planning; Cheol Ho Yun from Petrochemicals; Young-suk Lee from Advanced Materials; and Hijung Cho from Life Sciences.
An overview of our financial highlights for the quarter. On page 3,
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