LOTTE Energy Materials (CEO Kim Yeon-seop) announced today that it recorded revenue of KRW 211.4 billion ($USD), operating loss of KRW317 million ($USD), and net profit ofKRW While the overall sales decline due to the slowdown in the European market affected revenue, we expect North American sales to increase significantly by 135% year-over-year, driving future earnings improvement.
In terms of operating profit, fixed costs increased due to lower utilization rates at our domestic Iksan plant and Malaysian plant due to inventory adjustments, and we incurred losses on valuation of inventories and volatility in local exchange rates in Malaysia. The debt-to-equity ratio was 27.9%, down slightly from the previous quarter and maintaining a stable financial position.
While fourth-quarter results were somewhat limited in terms of demand recovery due to inventory adjustments at European customers, new supply from key customers' North American joint venture (JV) plants and the revitalization of the North American EV market were positive factors. In addition, 2025 will see a gradual recovery in copper foil sales as EV subsidies resume in Europe and a number of EV models are launched, as well as mass production at core customer factories in North America and new supplies to local OEMs.
LOTTE Energy Materials plans to secure market leadership and technological leadership by preparing mid- to long-term growth strategies such as expanding sales in the North American market, strengthening technology-based marketing, and commercial production of next-generation battery materials amid rapidly changing business conditions and challenging market conditions.
In particular, we plan to do our best to achieve tangible results in new business groups such as 'high-end copper foil' for the next-generation 4680 cylindrical type, which is currently being discussed with major customers for testing and supply, 'close contact copper foil' that optimizes dry process and improves battery productivity by preventing cathode active material peeling phenomenon, and 'ultra low light copper foil' for AI accelerators.'
'Although the market environment is unpredictable, we will continue to strengthen our internal stability through technology development and further consolidate our dominance in the North American market, which is growing steadily,' said Kim Yeon-seop, CEO of LOTTE Energy Materials.
