By Kim Yoo-chul
Staff Reporter
LG Chem said Tuesday it posted a record high operating profit in the third quarter thanks to a strong performance in its rechargeable battery and petrochemical businesses.
Operating profit soared by 75.3 percent to reach 729.9 billion won in the July-September period from 416.4 billion won a year earlier, the nation's largest chemicals maker said in a regulatory filing.
LG Chem CEO Kim Bahn-suk said the operating profit for the whole of 2009 would exceed 2 trillion won (some $1.7 billion), although the profit growth is expected to stall in the fourth quarter due on seasonal demand.
Net profits for the latest quarter rose to 543 billion won from 297 billion won a year ago. Sales increased 9.7 percent to 4.36 trillion won from 3.98 trillion won on a yearly basis.
LG Chem released the quarterly result on a consolidated basis, an international accounting guideline including its overseas performances.
Sales of batteries surged to 437.2 billion won in the quarter from 154.1 billion won a year before.
But the result excluded the industrial materials segment, which the company separated earlier this year. That business became a separate entity called LG Hausys.
"Our rechargeable battery business for electric cars will become the company's key driver in contributing to our external growth within three years," Kim told investors and analysts at the earnings briefing held at the Korea Exchange (KRX) in Seoul.
"The LCD glass business is expected to post profits from 2012," he said.
When asked about worries over uncertainties in the petrochemical industry, Kim simply cut speculation by saying that strong upstream product prices and stable demand from China will help the petro-related unit defend its bottom line.
"If the global economy shows signs of a mild recovery, it is highly unlikely that the petrochemical industry will paint a drastic upturn. But personally, it isn't necessary for LG Chem to prepare for a worst-case scenario," Kim added.
On a question over the won-dollar rate movement in 2010, he said, "The exchange rate will move between 1,100 won and 1,200 won during next year."
yckim@koreatimes.co.kr
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