SEOUL (Reuters) — LG Chem reported a more than six-fold jump in quarterly operating profit on Wednesday, as demand for surgical gloves and consumer electronics driven by the COVID-19 pandemic boosted sales of raw materials such as chemicals.
The South Korean chemicals and battery maker, whose wholly-owned battery subsidiary LG Energy Solution supplies Tesla Inc and General Motors Co, posted operating profit of 1.4 trillion won ($1.26 billion) for the January-March period, versus 206 billion won a year earlier.
That compared with the 1 trillion won forecast of analysts in the Refinitiv SmartEstimate.
Revenue rose 43% on year to 9.7 trillion won, LG Chem said in a regulatory filing.
Analysts said a continued rise in demand for materials stemming from the prolonged coronavirus pandemic contributed to LG’s record quarterly operating profit, as chemical materials used for home appliances and medical gear such as surgical gloves were in high demand.
The South Korean battery maker saw solid demand for its electric car batteries in the first quarter, backed by increased supplies of its cylindrical batteries for Tesla.
Earlier this month, the U.S. electric carmaker posted record deliveries for the first quarter even as a global chip shortage hurt its auto sector rivals.
