SEOUL, KOREA - LS Cable & System, one of the world's biggest cable manufacturers, will separate its U.S. subsidiary that has been the main reason for the parent company's weak financial performance.

 

After separation, the subsidiary will belong to LS Corp., the group holding company, and LS Cable & System will devote to the business of cable manufacturing.

 

The company held on October 21 a board of directors meeting and passed agendas including official separation of a domestic real estate business and Cyprus, LS Cable's U.S. corporation, and instead create a new company called LS I&D. The newly established company will take over the struggling real estate business in the cities of Anyang and Gunpo while absorbing Superior Essex, the largest cable manufacturer in North America and a subsidiary of Cyprus.

 

Once the transaction goes through as planned, the sales revenue and operating profit of Cyprus will no longer affect those of LS Cable & System and belong to those of LS Corp. In the second quarter of this year, the company stopped short of reporting a sales revenue of 1,928.2 billion won and an operating profit of 16.1 billion won, largely because of Superior Essex that saw its quarterly sales and operating profit plunge 8.8 and 60.2 percent, respectively, from a year ago.