SKC Co., a South Korean chemical materials producer, said Wednesday it swung to the red in the second quarter from a year earlier, mainly due to weak demand for basic industrial chemicals.
Its second-quarter net loss stood at 24.8 billion won (US$18.8 million), swinging from a profit of 119.7 billion won a year earlier, the chemical unit of SK Group, said in a regulatory filing.
It posted an operating loss of 36.9 billion won for the April-June period, compared with a profit of 102.7 billion won a year ago. Sales fell 16.3 percent to 630.9 billion won.
The loss was 41.6 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
SKC produces propylene oxide and propylene glycol -- the feedstock for polyurethane, a polymer used in a wide range of items from home furnishings, car seats and industrial adhesives to textiles.
SKC is pivoting to secondary battery components, primarily copper foil for electric vehicle (EV) and energy storage system (ESS) batteries, and semiconductor packaging, as part of efforts to boost its green portfolio.
SKC said it will continue to "make bold investments and reshape the 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.
Source: Yonhap News Agency