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[Alpha Biz=(Chicago) Reporter Kim Jisun] Kolon Industries made an announcement on the 7th that its sales and operating profit reached 1.3472 trillion won and 65.8 billion won in the second quarter of this year.
Compared to last year, it decreased by 3.0% and 25.8%, respectively. The slowdown in performance is attributed to weak demand due to the global economic crisis, continued uncertainties in the financial market, and widening deficits in the film and electronic materials sectors.
Compared to the first quarter, both sales and operating profit increased 9.6% and 127.8%. Increased sales of new cars have improved the performance of the industrial materials sector. Profitability in the chemical sector has also recovered due to falling raw material prices. The fashion sector saw its performance improve compared to the previous year despite worsening business conditions due to the combined effect of entering the semi-peak season.
By business, the industrial materials sector posted an operating profit of 41.1 billion won in the second quarter. The figure fell 27.4 percent year-on-year, but rose 18.4 percent compared to the previous year.
The chemical sector posted operating profit of 19.2 billion won. It is an improvement of 33.3% and 13.6%, respectively, compared to the same period last year and the previous year. Analysts say the company was able to take the lead amid sluggish market conditions due to falling prices of raw materials for oil balance and increased demand for phenol resin due to the boom cycle in the shipbuilding industry.
Operating profit in the fashion sector fell 26.9 percent on-year to 17.1 billion won. However, it has increased by 205.4% compared to the previous year.
The film and electronic materials sector continued to suffer losses. The company explained that the slowdown in demand for IT front-end industries and rising raw material prices had a significant impact.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
