LG Chem announced on July 17 that it posted an operating profit of 563.4 billion won in the second quarter of this year, up 56.7 percent from a year ago.
This is the largest quarterly operating profit since the third quarter of 2012. Sales amounted to 5,073 billion won, down 13.6 percent from a year before, due to a plunge in oil prices.
The main driver behind the hike in LG Chem's profitability is the basic materials business. Its production cost was reduced as it started using the raw materials which it purchased when they were cheap in the second half of last year.
With the seasonal peak season coming in, the demand for basic materials increased, leading to an improvement in the business profitability. The operating profit of the basic materials business reached 589.2 billion won in the second half of this year, up 102.5 percent year on year.
In contrast, LG Chem's information electronic materials business suffered a 62-percent decline in operating profit, while the battery cell business slipped to an operating loss of 42.4 billion won.
