LG Chem CEO warns of global uncertainties

South Korea’s leading chemical and materials firm LG Chem has called on all executives and employees to brace for “uncertainties” in the global economy, despite the marked improvement in its business.

“LG Chem has made improvements in businesses during the first half compared to the same period last year as executives and employees have made concerted efforts to achieve our goals,” CEO Park Jin-soo said at a meeting with them at the firm’s plant in Naju, South Jeolla Province, on Monday.

“Let’s prepare well to overcome the challenges, including increasing uncertainty in the global business environment and fierce global competition,” he added. 
 

He made the remarks as the company posted its highest profit in the April-June period since the third quarter of 2012.

In order to weather these obstacles, CEO Park requested that LG Chem executives and workers put priority on improving customer value in all business activities, including production, research and development, sales and logistics.

The chemical business unit of LG Group posted 5.7 trillion won ($4.9 billion) in revenue and 563.4 billion won in operating profits in the second quarter of this year, up 3.2 percent and 55.7 percent, respectively, from the preceding quarter.

The company said that strong demand for premium petrochemical products boosted the firm’s profitability.

The operating profit of LG Chem’s materials business stood at 589.2 billion won, up 83.3 percent from the previous quarter.

Its business for information technology and electronics parts, however, posted 16.8 billion won, down 62 percent from the previous quarter, and the battery business swung into the red as it recorded 42.4 billion won in operating losses.

An official from the firm said the materials business will gather further growth momentum as demand is due to increase in the peak season in the latter half, and business for IT and electronics parts and batteries would improve thanks to business expansion in China.

By Kim Young-won (wone0102@heraldcorp.com)