LG Chem Ltd. said Friday its net profit tumbled 68.9 percent in the third quarter from a year earlier due to falling profit margins and weak demand for major petrochemical products.
The net income for South Korea's leading chemicals firm stood at 137.2 billion won (US$116.7 million) in the July-September period, compared with 346.6 billion won a year earlier, the company said in a regulatory filing.
Sales inched up 1.6 percent on-year to 7.3 trillion won, and operating profit dropped 36.9 percent on-year to 380.3 billion won, it said.
"The margins from major petrochemical products decreased, but battery and advanced materials posted improved profitability," LG Chem said in a release.
The petrochemical division raised 4 trillion won in sales, followed by the battery business with 2.2 trillion won and advanced materials with 1.2 trillion won, it noted.
LG Chem said the petrochemical division grappled with falling margins due to weak global demand, while the battery business posted improved earnings on strong demand for small batteries and lithium-ion batteries for electric vehicles (EV).
The company said it expects to improve profitability in the fourth quarter on the back of high value-added petrochemical products and upbeat sales of EV batteries in the European market. (Yonhap)