LG Chem logs Q4 profit as battery business surges

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LG Chem logs Q4 profit as battery business surges

Published: 31 Jan. 2024, 18:21

SARAH CHEA
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LG Chem, Korea's leading chemical company, said Wednesday it shifted to a net profit in the fourth quarter from a year earlier on equity gains from its wholly-owned battery maker.

LG Chem swung to a net profit of 128.52 billion won ($96 million) in the three months ended in December from a net loss of 5.89 billion won during the same period of 2022, the company said in a statement.

The turnaround was driven by the company's shareholding gains from LG Energy Solution, the country's leading car battery maker, a company official said.

LG Energy Solution's operating profit jumped 43 percent on-year to 338 billion won in the fourth quarter helped by U.S. tax credits and robust sales in the United States.

LG Chem's operating profit climbed 18 percent to 247.43 billion won in the December quarter from 209.37 billion won a year ago. But sales fell 3.8 percent to 13.13 trillion won from 13.66 trillion won.

As for challenges ahead, LG Chem Chief Financial Officer Cha Dong-seok said geopolitical risks in the Middle East, slowing demand for EVs and a slowdown in the global economy will remain major concerns for the company this year.

For all of 2023, net income fell 6.5 percent to 2.05 trillion won from 2.19 trillion won due to lower demand for petrochemical products and battery-powered vehicles.

Operating income declined 15 percent to 2.53 trillion won last year from 2.98 trillion won the previous year. Sales rose 8.4 percent to 55.25 trillion won from 50.98 trillion won during the cited period.

Yonhap