LG Chem on Thursday posted 5.75 trillion won ($5.05 billion) in sales and 459 billion won in operating profit for the first quarter, indicating that the slowing demand in China has contributed to the loss of sales.

The firm said its sales grew 2.8 percent compared to the final quarter of last year, but its operating profit figure was down 8.2 percent during the same period.

However, its net profit during January to March amounted to 380 billion won, a slight rise of 1 percent compared to the previous quarter.

“The demand in China must increase for an improvement in quarterly earnings,” LG Chem vice chairman Kim Bahn-suk said at a regulatory filing.

“But the second quarter is expected to brighten up for the petrochemical industry due to the fact that it is the peak season, boosting the units sold as well as the price.”

Although the figure is a slight decrease from last quarter, its operating profit and net profit dropped 45 percent and 42 percent compared to the first quarter of last year, respectively.

LG Chem hit a record in operating profit in the first quarter of 2011 buoyed by the demands in emerging markets, including China.

In specific, the pertrochemical business reached 4.49 trillion won in sales and 369 billion won in operating profit, while its information and electronic material unit recorded 761 billion won in sales and 77.2 billion won in operating profit.

Meanwhile, the firm’s battery unit, which unveiled its quarterly earnings for the first time, set 562 billion won in sales and 13.5 billion won in operating profit, according to its officials.

(sharon@heraldcorp.com)