Kumho Petrochemical Reports 3Q Operating Profit of 213.8 Billion KRW, Up 212.7% Year-on-Year

[Asia Economy Reporter Park So-yeon] Kumho Petrochemical announced on the 6th that its operating profit for the third quarter of this year reached 213.8 billion KRW (consolidated basis), marking a 212.7% increase compared to the same period last year. This is the third consecutive quarter this year that the company has exceeded market expectations, delivering an 'earnings surprise.'

Kumho Petrochemical posted sales of 1.1882 trillion KRW and an operating profit of 213.8 billion KRW in the third quarter. While sales decreased by 2.3% compared to the same period last year, operating profit increased by 212.7%, surpassing the market forecast of 190.5 billion KRW by 12.2%. Previously, Kumho Petrochemical recorded operating profits of 133.1 billion KRW in the first quarter and 120.1 billion KRW in the second quarter.

Despite a decline in sales of key products in the synthetic rubber segment for tires, the significant increase in operating profit was due to strong margins on specialty products such as NB latex, which is used as a raw material for medical gloves. Kumho Petrochemical holds the number one global market share in this area.

Kumho Petrochemical is optimistic about its performance outlook for the fourth quarter as well. The synthetic rubber segment, its main product line, is expected to see demand recovery as tire manufacturers resume operations. Demand for specialty products like NB latex is also expected to continue due to the prolonged COVID-19 pandemic. The securities industry forecasts that Kumho Petrochemical will achieve its largest operating profit in 10 years since 2010, when it posted 840 billion KRW in operating profit.

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