Lotte Energy Materials reports narrower operating loss as sales decline

Lotte Energy Materials said that its second-quarter operating loss narrowed 45.7 percent from a year earlier to 16.9 billion won ($11.9 million), from 31.1 billion won, even as revenue declined.

Revenue fell 5.2 percent to 194 billion won ($136 million), from 205 billion won ($144 million) a year earlier. The company posted a net loss of 18.8 billion won ($13.2 million) for the quarter.

The company said sales of products for high-output small batteries used in AI data center BBU and electric power tools increased substantially, while sales for North American energy-storage systems and circuit foil remained solid. Demand for high-end circuit foil optimized for AI data centers is expanding, it said, while North American companies are sharply increasing demand for circuit foil made outside China.

Its fifth Malaysian battery-foil plant began full-scale operations in July. The sixth is scheduled to begin operations earlier than planned in the fourth quarter, as the company plans to shift its Malaysian battery-foil plants to full production and sales in the second half.

Kim Yeon-seop, the company's chief executive, said, "We expect to enter a full-fledged growth trajectory in the AI data industry based on a differentiated portfolio spanning high-end circuit foil and battery-foil products."