SKC posts W49.6b operating loss in Q3, eyes Malaysian unit's return to profit in Q4

SKC reported Wednesday that its third-quarter sales reached 638.9 billion won ($482 million), up 26 percent from a year earlier, while its operating loss narrowed 9.7 percent year-on-year to 49.6 billion won.

In the copper foil segment, sales came in at 248.2 billion won, driven by a gradual recovery in electric vehicle demand and growth in the North American ESS market.

However, the segment posted an operating loss of 54.4 billion won, reflecting one-time costs from streamlining domestic production facilities and fixed-cost burdens tied to the full-scale ramp-up of its Malaysian factory.

SK Nexilis, SKC's copper foil investment arm for secondary batteries, has completed its shift to a Malaysia-centered production and sales model.

SKC said it expects its Malaysian subsidiary to return to operating profit in the fourth quarter, as EV copper foil sales improve, North American ESS demand expands and higher selling prices are progressively reflected in results.

The semiconductor materials segment posted sales of 71.8 billion won and operating profit of 21.8 billion won. Strong results were driven by a higher share of high-value-added products for AI data centers, growing sales in new non-memory chip areas such as automotive and robotics, and improved profitability in existing memory chip products.

The chemicals segment recorded sales of 317.3 billion won and operating profit of 13.4 billion won, marking its third consecutive quarter in the black.

In the glass substrate segment, SKC plans to focus on reliability evaluation and yield improvement for embedded products. For non-embedded products targeting mobile communications applications, the company is in detailed discussions with customers on proof-of-concept validation and is continuing to develop new projects with them.

"The fundamental improvements and turnaround trajectory across our businesses are becoming increasingly clear," an SKC official said. "We will deliver tangible results by strengthening business competitiveness and improving profitability."