Hanwha Solutions Posts Profit in All Three Divisions for the First Time Since Merger

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions recorded operating profits in all three divisions for the first time since its merger in January. The company's overall operating profit margin also reached 9.6%, the highest since 2009, maintaining a steady growth trend.

Hanwha Solutions announced on the 10th that it posted consolidated sales of 2.4284 trillion KRW and operating profit of 233.2 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 0.1%, while operating profit surged by 35.7%. Compared to the previous quarter, sales and operating profit rose by 24.1% and 81.5%, respectively.

By business segment, the Chemical division recorded sales of 883.1 billion KRW, down 2.7% year-on-year, and operating profit of 158.8 billion KRW, up 66.8%. This was due to the continued effect of using low-cost raw materials amid falling international oil prices, and increased demand for disposable products caused by the impact of COVID-19, which led to price increases for PVC (polyvinyl chloride) and PO (polyolefin) products.

The Q CELLS division posted sales of 891.3 billion KRW, down 3.4% from the same period last year, and operating profit of 35.8 billion KRW, down 47%. Although module sales increased due to demand recovery in major solar markets such as the US and Europe, profit size decreased due to rising prices of key raw materials (wafers, silver, glass, etc.).

The Advanced Materials division saw sales increase by 1.4% year-on-year to 206.8 billion KRW, and operating profit surged 860% to 7.6 billion KRW. This was driven by a recovery in parts demand due to increased production by global automakers and improved performance in the electronic materials business following new product launches by major smartphone manufacturers, resulting in a successful turnaround to profitability.

Hanwha Solutions stated, "In the fourth quarter, the Chemical division is expected to continue benefiting from low-cost raw material input, but operating profit may decrease due to regular maintenance. The Q CELLS division is expected to improve performance with increased solar module sales."

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