SKC slumps into the red with 37 billion won Q2 loss

SKC posted a disappointing 36.9 billion won ($28 million) of operating loss in the second quarter, citing sluggish demand for chemicals.

SKC headquarters in central Seoul [SKC]

SKC posted a disappointing 36.9 billion won ($28 million) of operating loss in the second quarter, citing sluggish demand for chemicals.

It fell well short of the market consensus of 8.8 billion won of operating loss compiled by market tracker FnGuide.

Revenues fell 16.3 percent to 630.9 billion won, also missing the consensus of 728.9 billion won.

Its second-quarter net loss stood at 24.8 billion won, swinging from a profit of 119.7 billion won a year earlier.

SKC produces propylene oxide and propylene glycol — the feedstock for polyurethane, a polymer used in a wide range of items from home furnishings and car seats to industrial adhesives and textiles.

The company is pivoting to secondary battery components, primarily copper foil for electric vehicle and energy storage system batteries, and semiconductor packaging, as part of efforts to boost its green portfolio.

SKC said it will continue to "make bold investments and reshape its businesses" in the second half of this year for sustainable growth.

SK Nexilis, SKC's copper foil-making subsidiary, plans to start the commercial operation of its factory in Kota Kinabalu, Malaysia, in the third quarter.

SK Nexilis is aiming to increase the output of higher-value products to 58 percent in the long term and will boost the portion of its North America and Europe sales to 90 percent from around 50 percent, SKC said.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr]