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LG Chem Q1 net plunges 49% on high costs, low demand

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Officials of LG Chem attend the groundbreaking ceremony of its cathode plant in Tennessee, in this Dec. 19, 2023 photo. Courtesy of LG Chem

Officials of LG Chem attend the groundbreaking ceremony of its cathode plant in Tennessee, in this Dec. 19, 2023 photo. Courtesy of LG Chem

LG Chem, Korea's leading chemical company, said Tuesday its first-quarter net profit plunged 49 percent from a year earlier due to higher raw material costs and lower demand amid an economic slowdown.

Net profit for the three months ended in March fell to 341.69 billion won ($248 million) from 669.05 billion won in the year-ago period, the company said in a statement.

"Geopolitical risks in the Middle East drove up imported raw material prices. Battery sales to electric vehicle carmakers declined due to slowing sales of EVs," a company spokesperson said.

Operating profit plummeted 67 percent to 264.63 billion won in the first quarter from 803.7 billion won a year ago.

Sales fell 19 percent to 11.609 trillion won from 14.284 trillion won during the same period. (Yonhap)