LG Chem reports 22% rise in Q2 petchem operating profit

20 July 2010 15:06  [Source: ICIS news]

LONDON (ICIS news)--LG Chem's petrochemical arm reported a 22.1% increase in its second-quarter operating profit to won (W) 624bn ($514m) compared with the same period of last year, boosted by demand from China, the South Korean producer said on Tuesday.

Quarter on quarter, the segment's operating profit rose 27.3% from W490bn reported in the first three months of 2010.

LG Chem said profitability increased due to tight supply and strong demand across its product range - which includes acrylonitrile butadiene styrene (ABS), polyolefins, polyvinyl chloride (PVC) and rubber - from emerging markets such as India and the Middle East.

The group also announced that it was increasing its capital expenditure in its petrochemicals business over the full year of 2010 by 59.6% to W463bn.

Looking ahead, the company said that it expected a positive third-quarter result due to strong seasonal demand and an increase in sales on the back of product expansion in its petrochemicals business.

Overall, LG Chem's second-quarter net income jumped 36.0% year on year to W646bn. Its operating profit rose to W828bn, with sales up 31.3% year on year at W5,028bn, the company said.

It expects continued improvement in earnings from its optical and electronics material segment during the third quarter.

The company added that it would strengthen the customer base of its battery business on the back of demand growth from the automotive sector.

($1 = W1,214)

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By: Franco Capaldo
+44 (0)20 8652 3214



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