(LEAD) LG Chem shifts to Q1 net loss on equity losses

(LEAD) LG Chem-Q1 earnings

(LEAD) LG Chem shifts to Q1 net loss on equity losses

(ATTN: RECASTS throughout; CHANGES headline; ADDS photo)

SEOUL, April 30 (Yonhap) -- LG Chem Ltd., South Korea's leading chemical company, said it swung to a net loss in the first quarter from a year earlier due to reduced equity gains from affiliates.

The company shifted to a net loss of 781.9 billion won (US$526.2 million) from a net profit of 260.4 billion won a year earlier, it said in a press release.

Lower contributions from equity stakes in affiliates, including LG Energy Solution Ltd., weighed on quarterly performance.

LG Energy Solution, the country's largest battery maker, posted an operating loss of 207.8 billion won in the first quarter.

LG Chem also reported an operating loss of 49.7 billion won, compared with an operating profit of 437.7 billion won a year earlier. Sales fell 2.6 percent to 12.24 trillion won from 12.58 trillion won.

Higher raw material costs in the petrochemical segment, following geopolitical tensions in the Middle East, partially offset the operating loss, Chief Financial Officer (CFO) Cha Dong-seok said.

"With geopolitical risks in the Middle East and weak demand for electric vehicles (EVs) in the United States expected to persist for the time being, the company will restructure its portfolio toward higher value-added and higher-margin businesses," he said.

The corporate logo of LG Chem Ltd. as provided by the company (PHOTO NOT FOR SALE) (Yonhap)