Kolon Plastic Reports Operating Profit of 1.4 Billion KRW in Q1, Down 59.3% YoY

[Asia Economy Reporter Hwang Yoon-joo] Kolon Plastics Co., Ltd. announced on the 7th that its operating profit for the first quarter of this year was 1.4 billion KRW, a decrease of 59.3% compared to the same period last year. During the same period, sales decreased by 2.2% to 78.4 billion KRW, and net profit recorded a slight loss.

Sales slightly decreased due to reduced sales volume in the European and Chinese markets caused by the impact of COVID-19 and a decline in raw material prices due to falling oil prices. However, the company explained that operating profit turned positive compared to the previous quarter. Net profit decreased as the increase in foreign currency loan valuation losses of Kolon BASF Inoform, accounted for by the equity method, was reflected due to the rise in exchange rates.

Kolon Plastics stated, "Although the sluggishness of upstream industries such as automobiles due to COVID-19 affected the first quarter performance, we plan to discover future growth engines through enhancing competitiveness in the core POM business and continuous R&D investment." They added, "In particular, we will focus on high value-added products such as electric vehicles and automotive lightweighting."

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