LOTTE Chemical Corp. reported its largest quarterly operating loss of 414 billion won ($315 million) in the third quarter, as weak demand and rising logistics costs hit its core petrochemical business.
Sales edged up 6% year-on-year to 5.2 trillion won, but margins deteriorated sharply across all major divisions. The company’s basic chemicals unit, which accounts for about 70% of revenue, saw operating losses widen to 365 billion won from 33 billion won a year earlier.
The South Korean petrochemical maker’s overseas operations particularly struggled, with its U.S. subsidiary recording a 107 billion won operating loss due to maintenance work and elevated freight costs. Its Indonesian subsidiary LC Titan also remained in the red.
LOTTE Chemical’s advanced materials and battery foil businesses provided little relief, as both segments saw profits decline amid inventory adjustments by downstream customers. The company’s energy materials division swung to a 32 billion won loss.
Management expects continued pressure on profitability in the fourth quarter, citing seasonal weakness and ongoing inventory corrections by clients, though it sees some potential improvement in supply-demand balance as feedstock costs stabilize.
