SKC Posts 638.9 Billion Won in Q3 Revenue... Copper Foil Rebounds, Financial Improvement Accelerates

Revenue up 26%; operating loss of 49.6 billion won
Malaysia-based copper foil subsidiary expected to turn profitable in Q4
Debt ratio down to 122%; focus on securing glass substrate yield

SKC continued to post an operating loss in the third quarter of this year, despite higher revenue, due to one-off costs in its copper foil business and the burden of fixed costs. Having reorganized its copper foil production system around Malaysia and improved its financial structure, the company plans to accelerate its return to profitability.

SKC said on October 28 that it recorded revenue of 638.9 billion won and an operating loss of 49.6 billion won in the third quarter of this year. Revenue rose 26% from the same period a year earlier, while earnings before interest, taxes, depreciation and amortization (EBITDA) remained positive for the third consecutive quarter.

Revenue from the copper foil business rose about 49% year over year to 248.2 billion won. A gradual recovery in electric vehicle demand and growth in the North American energy storage system (ESS) market supported sales. However, the business posted an operating loss of 54.4 billion won due to one-off costs from streamlining domestic production facilities and the fixed-cost burden from operating its Malaysian plant.

SK Nexilis, SKC's copper foil subsidiary, has completed its transition to a production and sales system centered on Malaysia. SKC expects its Malaysian subsidiary to turn to operating profit in the fourth quarter, supported by improved sales of copper foil for electric vehicles, expanded North American ESS demand, and the phased reflection of price increases in sales.

The semiconductor materials business generated revenue of 71.8 billion won and operating profit of 21.8 billion won. Results were driven by a higher share of high-value-added products for AI data centers, increased sales in non-memory sectors such as automotive and robotics, and improved profitability of memory products. The chemicals business recorded revenue of 317.3 billion won and operating profit of 13.4 billion won, marking its third consecutive quarter in the black.

The company also reduced its financial burden. Through a paid-in capital increase in the first half of the year and capital-like fundraising by SK Nexilis, it lowered its debt ratio from 233% at the end of last year to 122%.

In its glass substrate business, SKC is focusing on reliability evaluations and securing yield for embedded products. For non-embedded products under development for mobile communications, the company is discussing proof-of-concept (PoC) testing with customers and is also pursuing the development of new projects with multiple customers.

An SKC official said, "Having completed preparations for a full-fledged turnaround, we will deliver tangible results by strengthening our business competitiveness and improving profitability."

This content was produced with the assistance of AI translation services.