KCC Breaks 5 Trillion Won in Sales for the First Time in History

Effect of US Momentive Acquisition Leads to Net Profit Turning Positive This Quarter

KCC Seocho-dong Headquarters Building Exterior.
[Photo by KCC]

[Asia Economy Reporter Kim Jong-hwa] KCC surpassed 5 trillion won in sales last year, thanks to the acquisition of the U.S. silicone company Momentive in 2019.

On the 10th, KCC announced that its consolidated sales for last year reached 5.0834 trillion won, an increase of 86.9% compared to the same period the previous year. This is the first time in KCC's history that sales have exceeded 5 trillion won.

In 2019, Momentive, which was an affiliate company, became a subsidiary last year, resulting in a sales increase effect of 2.4397 trillion won. KCC's highest sales record before this was 3.8639 trillion won in 2017.

Operating profit was 132.7 billion won, a 0.3% decrease from 133.2 billion won in the same period last year, but net profit turned positive at 549.3 billion won.

The net profit was driven by a 450.8 billion won increase in the valuation gain of Samsung C&T shares held, and a disposal gain of 125.1 billion won from the business transfer of Momentive's consumer sealants division to Henkel in Germany.

A KCC official stated, "This year, the impact of COVID-19 is expected to be less than last year, and the demand for silicone in Europe and North America is also expected to recover," adding, "The acquisition effect of Momentive will be fully realized starting this year."

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