S Korea's LG Chem Q2 net profit falls 40% on weak demand, prices

18 July 2012 10:20  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s LG Chem on Wednesday posted a 40.1% year-on-year fall in its second-quarter 2012 net income to Won (W) 374bn on the back of weaker demand and lower product prices of its petrochemicals, said the company in a statement.

Total sales increased by 5.2% year on year to W5, 996bn in the second quarter, while operating profit dropped by 35.1% to W503bn, according to the statement.

Sales at its petrochemicals unit was up by 4.46% year on year to W4, 521bn in the second quarter, while its operating profit fell by 46.4% to W344bn, the company said.

Looking ahead, LG Chem expects an improvement in petrochemical margins because of low feedstock costs and an increase in product prices in the third quarter of this year.

The company also expects a gradual improvement in demand from China in the July-September period, boosted by Beijing’s economic stimulus packages.
($1 = W 1,143)

By: Nurluqman Suratman

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