Seoul, South Korea - Lotte Chemical Corp. announced a significant shift in its financial performance, reporting a net profit in the third quarter of this year. This turnaround is attributed primarily to reduced losses in the basic chemicals business division, marking a stark contrast to the previous year's results.
According to Yonhap News Agency, the company achieved a net profit of 32.77 billion won (US$25 million) for the three months ending September 30. This performance is a notable improvement compared to the net loss of 31.07 billion won recorded in the same period last year. A company spokesperson highlighted that the improved bottom line was due to diminished losses in the basic chemicals division and bolstered by increased sales of high-end and customized chemical products to automotive and home appliance manufacturers.
Lotte Chemical, a key player in the chemical industry, produces fundamental chemicals like polyethylene and ethylene. These products are essential for manufacturing plastics and industrial chemicals, widely used in sectors such as construction and automotive, among others.
In addition to its net profit, Lotte Chemical, which is part of South Korea's retail conglomerate Lotte Group, also reported a transition to an operating profit. The company registered an operating profit of 28.08 billion won in the third quarter, a significant recovery from the operating loss of 451.25 billion won experienced a year earlier.
Despite these gains in profitability, the company saw a decline in sales, which fell 13 percent to 4.81 trillion won, down from 5.5 trillion won during the same period last year.