LOTTE Chemical recorded an operating loss in the first quarter of this year, but the deficit narrowed compared to the previous quarter. This is attributed to the positive exchange rate effect from the strong dollar and increased profits in the advanced materials sector.
LOTTE Chemical reported an operating loss of 126.6 billion won in the first quarter, indicating a decrease of 107.5 billion won compared to the fourth quarter of last year on the 13th. Compared to the same period last year, the deficit decreased by 8.7 billion won. Revenue in the first quarter was 4.9018 trillion won, a 3.6% decrease compared to the same period last year.
The institutional sector recorded sales of 3.3573 trillion won and an operating loss of 107.7 billion won. Although a power outage at the Daesan plant disrupted operations, improvements in spread and cost reductions, along with positive exchange rate effects, led to a reduction in losses.
The advanced materials sector recorded sales of 1.1082 trillion won and operating profit of 72.9 billion won. LOTTE Chemical explained that raw material supply stabilized and demand improved, resulting in profits due to reduced transportation costs and positive exchange rate effects.
LOTTE Fine Chemical recorded sales of 445.6 billion won and operating profit of 18.8 billion won. The improved performance was attributed to price increases of major products, expanded sales volume, and exchange rate effects.
In addition, LOTTE Energy Materials recorded sales of 158 billion won and an operating loss of 46 billion won. The long-term impact of the electric vehicle chasm led to a decrease in sales due to inventory adjustments by client companies and increased fixed costs due to adjustments in operating rates.
A LOTTE Chemical official noted, "We are making every effort to enhance profitability despite ongoing uncertainties, such as the Russia-Ukraine war and U.S. tariff issues," and stated, "We will continue to expand our high-value portfolio while also improving our financial soundness."