(2nd LD) LG Chem reports 12 pct rise in Q1 earnings

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By Nam Kwang-sik
SEOUL, April 27 (Yonhap) -- LG Chem Ltd., South Korea's leading producer of
chemicals, said Monday that its net profit rose 12 percent in the first quarter
from a year earlier thanks to a strong performance by its petrochemical division.

Net income amounted to 288.5 billion won (US$214.2 million) in the January-March
period, compared with 258.4 billion won a year ago, LG Chem said in a regulatory
filing.
Sales, however, fell 2 percent on-year to 2.93 trillion won, while operating
profit advanced 22 percent to 416.5 billion won, it said.
Shares of LG Chem finished flat at 133,500 won on the Seoul bourse.
LG Chem said its improved first-quarter bottom line was attributable to a
recovery in the price of petrochemical products, boosted by China's economic
stimulus measures.
Increased demand for liquid crystal display panels and batteries also contributed
to the improved performance in the first quarter, the company said.
The company's petrochemical division posted a combined 2.59 trillion won in sales
and a combined 373.7 billion won in operating profit during the same period,
while its information technology division registered net sales of 785.5 billion
won and an operating profit of 115 billion won.
LG Chem predicts that it will see steady growth in the IT sector in the second
quarter on the back of increasing demand for batteries, but that its
petrochemical sector will face difficulty due to the global economic recession.
LG Chem is increasing investments by 43 percent to 1.05 trillion won this year
while targeting 12.6 trillion won in sales, including sales from its
subsidiaries, a decrease of 13 percent from a year ago.
ksnam@yna.co.kr
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