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| 롯데케미칼 대산공장 (사진=롯데케미칼) |
[Alpha Biz=(Chicago) Reporter Paul Lee] Despite the worsening market conditions in the petrochemical industry, it achieved good results. Although it failed to escape the deficit in the first quarter of this year, it has drastically reduced its deficit due to its basic materials and high-tech materials businesses. As Lotte Energy Materials' performance was reflected in the second quarter, a green light was also turned on to achieve the surplus.
Lotte Chemical announced on the 11th that it recorded consolidated sales of 4.9323 trillion won and operating loss of 26.2 billion won in the first quarter of this year. Sales fell 9.5% year-on-year and recorded a fourth quarter deficit since the second quarter of last year.
However, the deficit was greatly reduced from 416.3 billion won in the previous quarter. Profitability in the basic material business and the high-tech material business played a part.
In terms of business and performance by major subsidiaries, the basic material business recorded operating profit of 28.5 billion won, turning into a surplus compared to the previous quarter. This is due to the stabilization of raw material prices and the improvement of the product market due to expectations of an economic recovery after two Chinese meetings.
The high-tech material business recorded operating profit of 45.5 billion won. Sales declined due to a drop in products due to the global economic slowdown, but profits improved QoQ due to stabilizing raw material prices and maritime fares.
Its subsidiary Lotte Chemical Titan recorded operating loss of 73.6 billion won and LC USA recorded operating loss of 27.9 billion won.
It is expected that it will be able to easily turn into a surplus in the second quarter. With the entry into the peak season, Iljin Materials, which completed the acquisition on March 14 this year, will be included in consolidated gains and losses from the second quarter. Iljin Materials' new mission is Lotte Energy Materials.
During the peak season, sales of high-tech materials are expected to increase by about 10%
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
