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LS Cable & System Believed to Have Attained 4 Tril. Won in Sales in 2018
Copper Price Trend Turns Favorable
LS Cable & System Believed to Have Attained 4 Tril. Won in Sales in 2018
  • By Jung Min-hee
  • January 15, 2019, 09:29
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LS Cable & System is believed to have attained 4 trillion in sales last year. 

LS Cable & System Ltd. is believed to have attained 4 trillion won (US$3.56 billion) in sales last year for the first time in five years after 2013.

The company’s cumulative sales as of the third quarter last year stood at 3.05 trillion won (US$2.72 billion), exceeding 1 trillion won (US$890.08 million) per quarter on average. The trend is believed to have continued in the fourth quarter, pushing the company’s annual sales above 4 trillion won (US$3.56 billion).

LS Cable posted 4.40 trillion won (US$3.91 billion) in sales in 2013 but it saw its sales decrease every year from 2014 to 2016. The company’s sales stood in the mid-3 trillion won (US$2.67 billion) range in 2017 when it began to show a rebound.

LS Cable was able to recover sales as the price of copper, which took up a big part in production costs, increased. When copper prices increase, wire makers raises the unit price of supply. The price of copper dropped from US$6,859 (7.71 million) per ton on average in 2014 to US$4,863 (5.46 million won) in 2016 but it rose to US$6,162 (6.92 million won) in 2017 and US$6,525 (7.33 million won) in 2018, according to the London Metal Exchange (LME) of the United Kingdom. An official from LS Cable said, “Copper prices account for more than 50 percent of production costs of power cable. The price trend has recently turned favorable.”

In recent years, LS Cable has established its production bases in Myanmar, Poland, France and the United States, which increased its overseas sales. The amount of the company’s order backlog came to 2 trillion won (US$1.78 billion) as of the third quarter of last year, up 45.5 percent from 1.38 trillion won (US$1.22 billion) in 2015. LS Cable is forecast to achieve a steady sales growth this year. Kim Ji-san, an analyst from Kiwoom Investment & Securities Co., said, “This year, the company is expected to improve performance in both power lines and communications lines. It is also strengthening its competence particularly in submarine cable business.” LS Cable recently won a contract to supply submarine cables to Taiwan for the first time in the domestic industry.

Meanwhile, LS Cable is planning to issue 150 billion won (US$133.51 million) worth of corporate bonds on Jan. 21. The company will improve its financial structure through the issuance of corporate bonds.