LOTTE Energy Materials turned to a loss in the first quarter of this year. This was interpreted as a deterioration in profitability due to global external uncertainties such as U.S. tariff policies.

LOTTE Energy Materials noted on the 9th that its operating loss in the first quarter of this year was 46 billion won, a turnaround from an operating profit of 4.3 billion won in the same period last year. Revenue for the same period was reported at 158 billion won, a decrease of 34.6%.

LOTTE Energy Materials produces copper foil products. /Courtesy of LOTTE Energy Materials

A representative from LOTTE Energy Materials said, "Profitability has deteriorated due to increased demand volatility caused by global external environmental uncertainties such as U.S. tariff policies and adjustments in customer inventory, leading to adjustments in operating rates."

However, the company plans to respond flexibly to rapidly changing market conditions based on a stable financial structure. At the end of the first quarter, the company’s liability ratio was reported at 19.9%, and the borrowing fund ratio was 5.8%.

In the second quarter of this year, while uncertainty due to tariffs still exists, it is expected that operating rates will gradually recover due to the ongoing inventory depletion effects since the second half of last year, and profitability will also improve.

In the second half of the year, an increase in sales is anticipated due to new product supplies to North American original equipment manufacturers (OEM) and joint ventures (JV) with customers, which is expected to lead to a return to profitability.