19 October 2010 12:09 [Source: ICIS news]
SINGAPORE (ICIS)--South Korean producer LG Chem said on Tuesday its third-quarter net income rose 10.5% year on year to won (W) 599bn ($531m), on the back of higher prices of petrochemical products.
Revenue in the July-September period jumped 16.9% year on year to W5,021bn, while operating profit grew 11.8% to W779bn, the company said in its quarterly report.
LG Chem’s petrochemical unit saw a 23% year-on-year surge in its third quarter revenue to W3,768bn, while its operating profit jumped 26.4% to W621bn, it said.
Having a differentiated product mix helped maintain the high profitability in the petrochemical business in the September quarter, the company said.
Favourable market conditions booted prices of petrochemical products such as polyvinyl chloride (PVC), which had a 10.7% jump in values to $972/tonne in September from July, according to the company.
The company added that it expected the strong growth in product prices to continue on favourable supply and demand conditions.
Meanwhile, LG Chem's information technology (IT) and electronics materials division suffered a 4.9% year-on-year drop in sales to W1,294bn, with the segment's operating profit falling 25% to W159bn.
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