LG Chem returned to profitability in the second quarter, posting its first operating profit in six months, according to 에너지경제신문. The company’s petrochemical division benefited from favorable inventory effects, while its advanced materials and battery segments saw improved earnings.
The turnaround beat market consensus estimates, 연합인포맥스 reported. LG Chem’s results were supported by a positive inventory lag effect, which helped offset earlier losses. The petrochemical business, in particular, gained from inventory-related gains, while the materials and battery units contributed through better profitability.
연합뉴스 reported that the company’s petrochemical and advanced materials divisions drove the earnings recovery. LG Chem also signaled plans to expand investment in cathode materials and semiconductors, according to v.daum.net. The company said it has secured three global customers for its non-memory copper-clad laminate (CCL) products and is pursuing additional supply deals, 데일리안 reported during the earnings call.
The company’s return to profit comes after a difficult stretch marked by weak demand and margin pressure across its core businesses. The inventory effect, which reflects timing differences between raw material costs and product prices, provided a temporary lift to the petrochemical division. Meanwhile, structural improvements in materials and battery operations appear to be gaining traction.
Looking ahead, LG Chem said it will focus on defending profitability in the second half of the year, according to 연합뉴스. Investors will be watching whether the inventory tailwind fades and whether the company’s expansion into cathode materials and semiconductor-related products can sustain the momentum.
