[EQUITIES] LG Chem’s Q3 profits to miss market estimates: Kiwoom
By 김영원Published : Sept. 27, 2016 - 10:35
[THE INVESTOR] Kiwoom Securities forecast in a recent investment report that LG Chem would post lower-than-expected earnings in the July-September period due to a price drop of small-sized battery and increasing costs.
“LG Chem’s operating profit will likely come in at 466.1 billion won (US$420.40 million), lower than previous market estimates in the third quarter,” said Lee Dong-wook, an analyst from the investment company, adding that the decreased price of small-sized batteries and increase in investment for electronic materials would drag down the profits.
His estimate is lower than a previous market consensus of 522.9 billion won, and the firm’s 546.4 billion won operating profit in the third quarter last year
The analyst also anticipated that Farm Hannong, an agrochemical firm which LG Chem acquired in the first half this year, would log an operating loss in the third quarter due to increasing costs for business restructuring.
By Kim Yuong-won (wone0102@herealdcorp.com)
“LG Chem’s operating profit will likely come in at 466.1 billion won (US$420.40 million), lower than previous market estimates in the third quarter,” said Lee Dong-wook, an analyst from the investment company, adding that the decreased price of small-sized batteries and increase in investment for electronic materials would drag down the profits.
His estimate is lower than a previous market consensus of 522.9 billion won, and the firm’s 546.4 billion won operating profit in the third quarter last year
The analyst also anticipated that Farm Hannong, an agrochemical firm which LG Chem acquired in the first half this year, would log an operating loss in the third quarter due to increasing costs for business restructuring.
By Kim Yuong-won (wone0102@herealdcorp.com)
