South Korea’s LG Chem posts decline in Q1 profit

LG Chem, South Korea’s leading chemical company, reported a 24% year-on-year decline in its first-quarter net profit, impacted by a weaker Korean won that drove up raw material costs.

Net profit for the January-March period fell to 260.4 billion won ($183 million), down from 341.7 billion won ($240 million) a year earlier. Still, the company reversed from a net loss of 899.2 billion won ($632 million) in the fourth quarter.

Despite the yearly drop in net income, operating profit surged by 69% to 447 billion won ($314 million) from 265 billion won ($186 million) in the same period last year.

Looking ahead, LG Chem said it plans to restructure its portfolio to focus on high-growth, high-margin businesses, while maintaining cost-reduction efforts in its struggling petrochemical segment.