Kolon Industries 2Q Operating Profit 36.8 Billion KRW... 40.3% Decrease YoY

[Asia Economy Reporter Park So-yeon] Kolon Industries announced on the 3rd that its consolidated operating profit for the second quarter of this year was preliminarily estimated at 36.8 billion KRW, a 40.28% decrease compared to the same period last year.

Sales amounted to 942.3 billion KRW, down 17.99% from the same period last year. Net profit increased by 11.73% to 17 billion KRW.

Due to the impact of the novel coronavirus disease (COVID-19), demand for automotive materials decreased, and regular maintenance of petroleum resin caused a slight decline compared to the previous quarter. Operating profit was steady in the chemical division, while the fashion division and film business recorded profits. The company explained that it plans to overcome external risks and maintain a steady performance trend based on the competitiveness of petroleum resin, film, electronic materials, and high value-added product materials.

The aramid business is expected to continue its favorable trend as the expansion line completed in the first quarter is operating normally, and demand for IT infrastructure materials such as 5G cables is steadily increasing. The fashion division plans to focus its business capabilities in line with the trend of increased domestic leisure activities such as hiking and golf due to COVID-19, continuing its performance recovery.

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