LG

■ Q3 Consolidated Performance (Including LG Energy Solution)
□ Revenue: KRW 11.1962 trillion (11.3% decrease YoY)
□ Operating Profit: KRW 679.7 billion (38.9% increase YoY)
 
■ CFO Dong Seok Cha:
“In the third quarter, we generated improved earnings through growth across our diversified portfolio, including a turnaround in petrochemicals, the receipt of an advance payment from a licensing-out agreement in Life Sciences, and stronger results at LG Energy Solution, together with cost-reduction initiatives across the entire value chain.”
 
“While the operating environment is expected to remain challenging amid subdued global demand, we will accelerate our shift toward a higher-value, higher-margin portfolio and overcome the current headwinds by advancing new future businesses and optimizing operations.”
 
 
LG Chem announced on the 31st that it recorded consolidated revenue of KRW 11.1962 trillion and operating profit of KRW 679.7 billion for the third quarter of this year.
 
Compared to the same period last year, revenue decreased by 11.3% while operating profit increased by 38.9%. Quarter on quarter, revenue declined by 1.9%, and operating profit rose by 42.6%.
 
CFO Dong Seok Cha stated, “In the third quarter, we generated improved earnings through growth across our diversified portfolio, including a turnaround in petrochemicals, the receipt of an advance payment from a licensing-out agreement in Life Sciences, and stronger results at LG Energy Solution, together with cost-reduction initiatives across the entire value chain.”
 
He added, “While the operating environment is expected to remain challenging amid subdued global demand, we will accelerate our transition toward a higher-value, higher-margin portfolio and overcome the current headwinds by advancing new future businesses and optimizing operations.”
 
The detailed third-quarter performance and fourth-quarter outlook by business division are as follows.
 
 
Petrochemicals Company
The Petrochemicals Company recorded revenue of KRW 4.4609 trillion and an operating profit of KRW 29.1 billion. Although sales declined quarter on quarter due to the impact of U.S. tariffs and softer demand in downstream industries, the Company returned to profit on the back of improved product spreads from lower feedstock prices and continued cost-reduction efforts.
 
In the fourth quarter, profitability is expected to come under pressure from continued weak global demand, narrower spreads, and lost production opportunities associated with scheduled maintenance at the Daesan plant.
 
 
Advanced Materials Company
The Advanced Materials Company posted revenue of KRW 838.2 billion and an operating profit of KRW 7.3 billion. Shipments of battery materials declined as customers maintained conservative inventories following the end of U.S. EV purchase incentives. Still, sales and profitability in electronic and engineering materials remained solid thanks to a higher mix of high-value-added products. In the fourth quarter, revenue is expected to decline due to year-end inventory adjustments by battery-materials customers and the seasonal off-peak period for electronic materials.
 
 
Life Sciences Company
The Life Sciences Company recorded revenue of KRW 374.6 billion and an operating profit of KRW 100.6 billion. Revenue and profitability increased with the receipt of the remaining upfront payment from the licensing-out of a rare obesity treatment. In the fourth quarter, profitability is expected to decline due to a base effect from this one-off licensing income and higher R&D expenses.
 
 
LG Energy Solution (Subsidiary)
The subsidiary LG Energy Solution posted revenue of KRW 5.6998 trillion and an operating profit of KRW 601.3 billion. Although EV demand remained weak following the end of U.S. purchase incentives, earnings improved on increased shipments of North American ESS and new small-format batteries, together with company-wide cost-reduction efforts. In the fourth quarter, while policy-driven softness in North American EV demand and intensified price competition in Europe are expected to persist, the company will focus on securing orders with a refreshed product lineup and on establishing a leading market position through proactive responses to North American ESS demand.
 
 
Farm Hannong (Subsidiary)
The subsidiary Farm Hannong reported revenue of KRW 101.5 billion and an operating loss of KRW 20.0 billion. Revenue declined year over year due to inventory adjustments by overseas customers. In the fourth quarter, revenue and profitability are expected to improve year over year on the back of expanded domestic and international sales of crop-protection products.