SEOUL, Jul 16, 2008 (AsiaPulse via COMTEX) -- LGCLF | Quote |...

SEOUL, Jul 16, 2008 (AsiaPulse via COMTEX) -- LGCLF | Quote | Chart | News | PowerRating -- LG Chem Ltd. (KSE:051910), South Korea's leading producer of chemicals, said Wednesday its second-quarter earnings soared 57 per cent from a year earlier on the back of strong performances in the petrochemical and battery sectors.
Net profit came to 375.3 billion won (US$371.5 million) in the April-June period, compared with 236.7 billion a year ago, LG Chem said in a regulatory filing.

Revenue rose 41.3 per cent to 37.3 trillion won in the second quarter and operating profit nearly tripled to 481.4 billion won, the company said.

Shares of LG Chem rose 1.89 per cent to close at 97,000 won on the Seoul bourse.

LG Chem predicts good third-quarter earnings as its battery and petrochemical sectors are expected to continue enjoying rises in their profits.

In June, LG Chem developed a prototype of a lithium ion rechargeable battery for hybrid electric vehicles (HEVs) with financial support from the government. A total of 39.3 billion won (US$37.6 million) has been spent on the project since 2005.

Last December, LG Chem signed a deal with Hyundai Motor (KSE:005380), South Korea's No.1 carmaker, to provide lithium ion rechargeable batteries for HEVs. Hyundai Motor plans to produce HEVs from late next year.

LG Chem merged with its affiliate LG Petrochemical Co. in November 2007. The merger contributed to its good earnings in the second quarter, LG Chem said.

(Yonhap)