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Lotte Fine Chemical stock, third-quarter results

Lotte Fine Chemical stock faces margin pressure as sales rise

Published on 10/31/2026 at 02:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Lotte Fine Chemical stock faces pressure from weaker profitability despite stronger sales. Management is expanding semiconductor materials, cellulose and clean-ammonia businesses.

Profitability trails revenue growth

  • Higher ammonia prices and expanded TMAC sales supported quarterly revenue.
  • Higher raw-material costs weighed on operating profit and net income.
  • The company is investing in semiconductor materials, cellulose and clean-ammonia activities.
Lotte Fine Chemical stock, third-quarter results, specialty chemicals, TMAC, clean ammonia, Illustration mit AI erstellt.
Lotte Fine Chemical stock, third-quarter results, specialty chemicals, TMAC, clean ammonia, Illustration mit AI erstellt.

Lotte Fine Chemical reported stronger sales but weaker profitability for the third quarter on Thursday, October 29, 2026. Yonhap News Agency said revenue rose as operating income and net income declined year over year.

Sales rise as costs weigh

Revenue for the July-September period increased 18.5 percent to 525.3 billion Korean won. Operating income fell 20.3 percent to 22 billion Korean won, while net income declined 14.2 percent to 30.2 billion Korean won.

Growth was supported by higher international ammonia prices and additional sales from the expanded production capacity of TMAC, a semiconductor-material business. Higher raw-material costs for chlorine-based products, including epichlorohydrin, pressured profitability.

Specialty businesses in focus

Lotte Fine Chemical is increasing its focus on specialty products as it seeks to reduce reliance on more cyclical chemical operations. The company plans to expand TMAC production capacity by about 16 percent by 2028 to 64,000 metric tons annually.

Expanded cellulose capacity for food and pharmaceutical applications is also contributing to the specialty portfolio. In clean ammonia, the company is building supply, re-export and marine-fuel activities while pursuing power-generation applications in South Korea.

Business model and competition

Lotte Fine Chemical is a South Korean chemical producer serving industrial, semiconductor, pharmaceutical, food and energy-related markets. Its portfolio includes chlorine-based chemicals, cellulose derivatives, semiconductor materials and ammonia solutions. In specialty cellulose and related materials, it competes with larger global suppliers such as Dow and Shin-Etsu Chemical while maintaining a stronger regional focus in Asia.

Lotte Fine Chemical quarterly figures

  • Reporting period: July-September 2026
  • Revenue: 525.3 billion Korean won
  • Operating income: 22 billion Korean won
  • Net income: 30.2 billion Korean won
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