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(LEAD) LX International Q1 net down 30 pct on lower mineral prices, freight rates

All News 14:27 April 28, 2023

SEOUL, April 28 (Yonhap) -- LX International Corp. said Friday its first-quarter net income shrank 29.9 percent from a year earlier, due largely to a downturn in mineral prices and shipping rates.

Net income reached 156.4 billion won (US$116.6 million) in the January-March period, compared with 223.1 billion won the previous year, the resources trading company said in a regulatory filing.

Operating profit came to 161.7 billion won, down 34.2 percent from 245.7 billion won a year ago. Sales fell 24.8 percent on-year to 3.69 trillion won.

The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 105.7 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

"Resource prices and freight rates, which were favorable last year, entered a downward trend this year, resulting in base effects," the company said in a release.

"This year, we plan to focus on bolstering cash generation to preemptively respond to the deteriorating external environment and business uncertainties," it said.

Lx International is expanding its critical minerals and renewable energy sectors in diversification efforts. It plans to increase investment in nickel mines and other secondary battery materials as new growth drivers.

It said earlier it is looking at multiple nickel mines in Indonesia.

It is also seeking opportunities for intermediate goods as demand for nickel refining or manufacturing of precursors -- key processes in electric vehicle battery production -- is expected to grow to qualify for a new U.S. law that gives tax credits to companies investing in U.S. green energy markets.

LX International, formerly LG International Corp., is engaged in the development and trading of minerals, industrial materials, and electrical and electronic components, as well as mining and logistics.


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