Kolon Industries, 1Q Operating Profit 69.1 Billion KRW... Up 160.3% YoY

[Asia Economy Reporter Hwang Yoon-joo] Kolon Industries announced on the 3rd that its operating profit for the first quarter of this year increased by 160.3% compared to the same period last year, reaching 69.1 billion KRW. Sales rose by 10.2% to 1.0904 trillion KRW, while net profit decreased by 68.1% to 52 billion KRW.

Kolon Industries explained, "First-quarter sales increased compared to last year due to global competitiveness and a solid network base, along with favorable conditions in the industrial materials and film & electronic materials sectors. Operating profit also showed a clear improvement due to increased performance in the industrial materials and film & electronic materials sectors and a turnaround to profitability in the fashion sector."

Specifically, in the industrial materials sector, competitiveness in aramid for 5G cables and ultra-high-performance tires (UHPT) remains strong, and tire cord performance improved due to growth in the automotive industry, including new demand from electric vehicles. The automotive materials subsidiary also experienced a performance turnaround, indicating that the favorable trend is expected to continue for the time being, making the mid- to long-term business outlook positive. Performance in new hydrogen fuel cell business areas such as PEM and moisture control devices is also on the rise.

Despite recent logistics disruptions and intensified competition, the chemical sector showed improved performance compared to the previous quarter due to expanded supply of petroleum resins for tires and increased sales of epoxy resins for 5G-related electronic materials, which possess world-class competitiveness.

The film sector continued its quarterly upward trend. Although there was a cost burden due to rising raw material prices, the company improved its portfolio and expanded sales of high value-added products by starting supply of film materials for displays, electric vehicle secondary batteries, and eco-friendly products (PCR Film), maintaining the upward momentum.

Strong sales from overseas subsidiaries are also driving the film sector's performance growth. CPI maintains a strong No.1 position in the Chinese market, applied to Xiaomi’s first foldable phone, the Mi Mix Fold, a global smartphone manufacturer. CPI has also entered the medium-to-large display market by being applied to Lenovo ThinkPad X1 Fold, and plans to expand applications to various form factors with its unique technology and competitiveness.

The fashion sector succeeded in turning to profitability compared to the same period last year. With increased outdoor activities, sales of golf-related brands (WACC, G/Fore, Golden Bear) rose, and online sales continued to grow, leading to expectations of a full-scale turnaround this year.

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