EcoPro’s third-quarter operating profit at 11.2 billion won... “Metal weakness and mounting currency headwinds”

[Financial News] EcoPro’s third-quarter operating profit fell to 11.2 billion won from 33.6 billion won in the previous quarter.
EcoPro said on the 5th that its consolidated revenue for the third quarter was 810.7 billion won. It said it remained profitable despite worsening external conditions, including falling metal prices and a weaker exchange rate. Cumulative revenue through the third quarter stood at 2.4504 trillion won, with operating profit of 101.1 billion won.
ECOPRO BM, which makes cathode materials, posted revenue of 557.9 billion won and operating profit of 12 billion won. Revenue edged down from the previous quarter as growth in the North American electric vehicle market slowed, but ESS revenue increased as the number of AI data centers grew.
EcoPro HN Co., Ltd. posted revenue of 52.8 billion won and operating profit of 11.3 billion won, both up from the previous quarter. The increase was driven by a semiconductor boom that boosted orders. Cumulative operating profit through September this year was 22.1 billion won, already exceeding last year’s full-year operating profit of 11.7 billion won.
EcoPro Materials, which handles precursors, posted revenue of 181.1 billion won, up 2.3 billion won from 178.8 billion won in the previous quarter, but recorded an operating loss. The loss is attributed to the combined effects of exchange rates and weak metal prices. Revenue from recycling and other business segments rose by 8.6 billion won to 41.8 billion won from 33.2 billion won in the previous quarter. The lithium business posted revenue of 54.2 billion won, as some volumes declined due to a customer’s production-line conversion.
EcoPro Group recently signed a toll-processing contract with a new North American customer to process black mass on its behalf using Closed Loop Eco System (CLS) technology. Black mass is a powder obtained by shredding used batteries and contains valuable metals such as nickel, cobalt and lithium. The U.S. Department of Commerce has been enforcing restrictions on black mass exports since August 27, but toll processing is exempt if all the valuable metals processed overseas are brought back into the United States.
The group is discussing its “EcoPro Package,” which bundles lithium, precursors, cathode materials and other products to supply materials based on recycled minerals, with multiple customers, including in North America. 
EcoPro HN Co., Ltd. expects its performance to improve more quickly as revenue from environmental plant orders begins to be recognized from the fourth quarter. It has completed a pilot production line at its Ochang Campus for semiconductor back-end packaging materials and aims to obtain approval from end customers next year.
ECOPRO BM plans to stabilize production lines at its Hungary plant, secure new volumes and gradually increase shipments. In Indonesia, it is securing upstream resources for cathode materials through the IMIP industrial park and BNSI smelter, while utilization at EcoPro Materials’ Green Eco Nickel (GEN) smelter is also recovering.
EcoPro CEO Kim Jang-woo said, “We plan to lay the groundwork for improving our performance by diversifying business opportunities with customers, including toll processing of black mass, new precursor volumes and securing new cathode-material customers.” He added, “Starting in the fourth quarter, we will achieve solid growth and continue to secure medium- and long-term growth drivers.”
[email protected] Kim Dong-chan Reporter