South Korean chemical maker LG Chem Ltd. reported record quarterly operating profit and sales in its preliminary figures for the third quarter of 2020. According to the earnings guidance, the company’s operating profit soared to KRW902.1 billion ($784.8 million) in the quarter, representing a 57.8% quarter-to-quarter increase and a 158.7% year-on-year surge. Meanwhile, sales were up 8.2% quarter-on-quarter and 8.8% year-on-year to KRW7.5 trillion ($6.5 billion). LG Chem turned 2.89% lower on Monday to KRW672,000.
The strong performance is attributed to the robust performance of its petrochemical segment and continued profit growth of its vehicle battery business. LG Chem’s petrochemical business enjoyed an increase in the price of key products, such as PVC, ABS, and NB Latex. The automotive battery unit, which swung into profit in the second quarter, would likely extend profit gain into the fourth quarter thanks to a pick up in vehicle demand.
LG Chem is expected to register robust earnings in the October-December quarter, driven by growing demand for durable goods for home appliances, furniture, and vehicles, as well as for hygiene-related equipment amid the coronavirus pandemic, analysts said.
