(LEAD) LG Chem Q4 net tumbles 51 pct on lower prices

SEOUL, Jan. 30 (Yonhap) -- LG Chem Ltd., South Korea's leading producer of chemicals, said Friday its net profit plunged 51 percent in the fourth quarter of last year from a year earlier due to a fall in petrochemical prices.

Net income came to 61.6 billion won (US$44.6 million) in the October-December
period, compared with 126 billion won a year ago, LG Chem said in a regulatory
filing.
Sales rose 7.8 percent on-year to 3.23 trillion won, but operating profit dipped
44.6 percent to 122.6 billion won.
Shares of LG Chem fell 0.25 percent to 80,500 won on the Korea Exchange.
According to the Korea Petrochemical Industry Association (KPIA), petrochemical
prices have fallen at a faster pace than oil prices since July of last year.
For the full year of 2008, LG Chem posted a net profit of 1 trillion won, up 46.1
percent from the previous year thanks to strong performances in the battery
sector. Revenue rose 34.2 percent to 14.5 trillion won and operating profit shot
up 87.2 percent to 1.4 trillion won.
On Jan. 13, LG Chem signed a deal with top U.S. automaker General Motors Corp. to
supply lithium-ion polymer batteries for GM's Chevrolet Volt, a plug-in electric
vehicle, from Nov. 1, 2010 to the end of 2015.
LG Chem will spend about 1 trillion won until 2013 to produce the batteries, the
company said.
LG Chem also plans to provide the batteries to leading South Korean automaker
Hyundai Motor Co. and affiliate Kia Motors Corp., which will begin production of
hybrid electric vehicles (HEV) in the second half of this year.
ksnam@yna.co.kr
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