Kolon Industries Q1 Operating Profit 26.5 Billion KRW, Down 45% YoY

[Asia Economy Reporter Park So-yeon] Kolon Industries posted sluggish results in the first quarter due to the impact of the novel coronavirus disease (COVID-19).

Kolon Industries announced on the 12th that its consolidated operating profit for the first quarter of this year was preliminarily estimated at 26.5 billion KRW, down 45.32% compared to the same period last year.

Sales amounted to 989.3 billion KRW, a decrease of 6.51% compared to the same period last year.

Net profit increased by 711.77% to 163.1 billion KRW. The sharp rise in net profit was due to gains from the sale of shares in SKC Kolon PI.

By segment, industrial materials recorded sales of 427.5 billion KRW in the first quarter, down 5.2% from the same period last year, and operating profit decreased by 29.3% to 15.2 billion KRW. The company explained that sales declined due to disruptions in the operation of its Chinese factory caused by COVID-19.

The chemical division posted sales of 209.6 billion KRW, up 10.7% from the same period last year, and operating profit remained steady at 20.1 billion KRW compared to 20.5 billion KRW in the same period last year.

This was due to solid performance in petroleum resins and expanded sales of high-margin epoxy resin products.

The film and electronic materials division recorded first-quarter sales of 137.1 billion KRW, down 7.3% from the same period last year, but operating profit rose 54% to 5.4 billion KRW thanks to strong sales of high value-added products and a decline in raw material prices.

The fashion division experienced declines in both scale and profitability due to the impact of COVID-19. Sales fell 27.3% to 170.8 billion KRW, and it posted an operating loss of 14 billion KRW, returning to the red.

A Kolon Industries official stated, "The aramid business is operating normally with the expansion line completed in the first quarter, and demand for IT infrastructure materials such as 5G cables is steadily increasing, maintaining a stable sales trend."

He added, "The transparent polyimide film business is also expected to continue increasing sales volume as the foldable phone market and display form factors diversify and demand grows."

This content was produced with the assistance of AI translation services.