MOSCOW (MRC) -- LG Chem posted 457.7 billion won (USD402.97 million) in first-quarter operating profit, up 26.5 percent from a year ago, with its earnings lifted by robust sales in its basic materials sector, said Koreatimes.
Sales came in at 4.87 trillion won, down 0.8 percent from the previous year, the company said in a regulatory filing, Thursday. Net profit was 338.1 billion won, up 37.3 percent from a year ago, a 63 percent increase on a quarterly basis.
LG Chem said the profit growth was driven by high profitability from diversified premium lineups in its basic materials division.
"We achieved a healthy first-quarter performance, largely due to improved profitability from diversified business portfolios focusing on premium products lineup in the basic materials sector," LG Chem said in a statement.
The division was the company's major profit booster, posting 466.2 billion won in operating profit, up 45.1 percent from a year ago.
But the company recorded operating losses in its battery and electronics materials sectors.
As MRC informed earlier, LG Chem has completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider. Following a series of negotiations since September 2015, LG Chem has finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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