SKC achieves record sale H1, but income falls Q2 amid rising raw material prices

[Source: SKC Co.]

SKC Co., chemical and tech material producing unit of South Korean conglomerate SK Group, suffered an 18 percent on-quarter fall in operating profit for April-June period on rising raw material cost, but nevertheless achieved 1 trillion won ($766.4 million) sales milestone for two consecutive quarters on strong sales from battery copper foil business.

The company in its regulatory filing on Monday reported its consolidated operating profit for the second quarter reached 109.4 billion won, down 17.7 percent from a quarter ago and 19 percent a year earlier.

Net profit gained 32.7 percent on quarter and 55.3 percent on year to 119.7 billion won, while sales lost 3.9 percent from three months ago but added 30.2 percent against a year earlier to total 1.08 trillion won.

SKC shares were trading 1.08 percent lower at 137,500 won in Seoul trading at 12:20 p.m. Monday.

For the first six months, SKC¡¯s operating profit rose 10.5 percent on year to 242.4 billion won, with sales up 39.8 percent to 2.2 trillion won. Net income jumped 51.7 percent to 209.8 billion won.

Rechargeable battery business was the main driver of its revenue growth. Its copper foil making unit SK Nexilis delivered an operating profit of 29.6 billion won, gaining 57.4 percent on year, with sales up 26.6 percent to 199.5 billion won. It is expecting demand growth in the third quarter amid an ease in lockdowns in China and new car releases in Europe.

Chemical business by SK PIC Global and others posted an operating profit of 69.5 billion won on revenue of 412.3 billion won. The bottom line shriveled 25.3 percent on year due to slowed demand and increased supply from expanded lines of industry peers.

Semiconductor materials division reported an operating profit of 6.3 billion won on sales of 135.6 billion won, and industrial materials business 15 billion won in operating profit and 321.1 billion won in sales.

SKC plans to focus on expanding high value-added product sales, expecting waning sales in the front industry and higher costs.

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