LG Chem Ltd., South Korea's No. 1 chemical company, is expected to deliver market forecast-beating earnings for the third quarter of the year, driven by firm demand for its key products and a recovery in its EV battery business, industry data showed Wednesday.

LG Chem, set to report its third-quarter bottom line next week, is estimated to have logged a net profit of 517 billion won (US$458 million) during the July-September period, compared with 297 billion won a year earlier, according to data compiled by Yonhap Infomax, the financial information provider affiliated with Yonhap News Agency.

Its operating income is projected at 736 billion won, also up 60 percent from a year earlier, with sales spiking 26.5 percent on-year to reach 6.39 trillion won.

"Its battery business is expected to help boost its earnings," said Yoon Sung-noh, an analyst at Daishin Securities. "Demand from smartphone makers remain strong as well."

LG Chem said earlier its battery unit logged an operating income of 7.5 billion won on sales of 1.12 trillion won during the second quarter.

  The company entered the EV battery business in 2009. The company has supplied batteries to global carmakers, such as Audi and Renault-Nissan, as well as others. It currently operates an EV battery plant in China, the United States and South Korea.

In 2015, LG Chem started operation of its new EV battery plant in China, eyeing growing demand on the back of Beijing's plans to tackle air pollution by introducing more eco-friendly cars.

Last year, the company posted a net profit of 1.28 trillion won, rising from 1.15 trillion won a year earlier.

The company aims to log 22.82 trillion won in sales this year, up 10.5 percent from last year, it said earlier. LG Chem also said it plans to spend 2.76 trillion won this year, sharply up 40 percent from 2016.

"Spreads on its key products, such as polyvinyl chloride (PVC), have remained firm and its battery business has turned around," said Yoon So-hyun, an analyst at BNK Investment & Securities. "The spreads will further expand down the road."

저작권자 © The Korea Post 무단전재 및 재배포 금지