SKC posts 49.6 billion won operating loss in Q3, wider than previous quarter

[Financial News] SKC posted revenue of 638.9 billion won and an operating loss of 49.6 billion won in the third quarter of this year. Revenue increased 26% from the same period last year, while the operating loss narrowed by 5.3 billion won. However, compared with the previous quarter, the operating loss widened by 35.2 billion won. The semiconductor materials and chemicals businesses were profitable, while the copper foil business posted an operating loss of 54.4 billion won.
SKC announced its third-quarter results on the 28th.
By business, the copper foil segment posted revenue of 248.2 billion won, supported by a recovery in electric vehicle (EV) demand and growth in the North American energy storage system (ESS) market. However, it recorded an operating loss of 54.4 billion won, reflecting one-time costs incurred while streamlining domestic production facilities and the fixed-cost burden of operating its plant in Malaysia, among other factors.
SK Nexilis Co., Ltd., which is responsible for the copper foil business, has completed its transition to a production and sales system centered on Malaysia. SKC forecast that its Malaysian subsidiary would return to operating profitability in the fourth quarter, supported by improved sales of copper foil for EVs, growing North American ESS demand and the phased incorporation of higher selling prices.
The semiconductor materials business posted revenue of 71.8 billion won and operating profit of 21.8 billion won. Results reflected a higher share of high-value-added products for AI data centers, increased sales in non-memory fields such as automotive and robotics, and improved profitability of existing memory products.
The chemicals business posted revenue of 317.3 billion won and operating profit of 13.4 billion won, marking its third consecutive profitable quarter.
SKC’s financial structure improved through a paid-in capital increase and equity-like financing. After carrying out a paid-in capital increase in the first half of this year, SKC completed large-scale equity-like financing for SK Nexilis Co., Ltd. As a result, the debt ratio fell by 111 percentage points, from 233% at the end of last year to 122% in the third quarter.
In its glass substrate business, SKC plans to focus on reliability testing and improving yield for embedded products. For non-embedded products, it is discussing proof-of-concept (PoC) testing with customers for products under development for mobile communications, and is also pursuing new project development with multiple customers.
An SKC official said, "Improvements in the fundamentals of each business and the contours of a turnaround are becoming much clearer," adding, "Now that we have completed preparations for a full-fledged turnaround, we will continue to deliver tangible results by strengthening our business competitiveness and improving profitability." 

[email protected] Kim Mi-hee Reporter