Kumho Petrochemical Achieves Record Quarterly Performance... 1Q Operating Profit of 612.5 Billion Won

Record Highest Sales and Operating Profit Since Establishment
Main Product Synthetic Rubber Drives Performance

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical recorded the highest quarterly performance in its history in the first quarter of this year.

Kumho Petrochemical announced on the 4th that its consolidated operating profit for the first quarter of this year reached 612.5 billion KRW, an increase of 360.2% compared to the same period last year. During the same period, sales increased by 51.3% to 1.8545 trillion KRW.

Sales exceeded the previous record of 1.7077 trillion KRW in the second quarter of 2011 by 8.6%, and operating profit increased by 113.9% compared to the previous record of 286.4 billion KRW in the first quarter of 2011.

By segment, the synthetic rubber division recorded sales of 765.9 billion KRW and operating profit of 292.1 billion KRW. Amid steady demand for NB latex, Kumho Petrochemical’s core product, synthetic rubber for tires, showed strong demand, resulting in significant increases in sales and profitability. The strong performance of key synthetic rubber products such as NB latex is expected to continue in the second quarter as well.

The synthetic resin division recorded sales of 419.9 billion KRW and operating profit of 89.3 billion KRW. Profitability of ABS improved due to strong demand from downstream industries such as automobiles, home appliances, and toys, and PS profitability also continued to improve. In the second quarter, supply of the main raw material SM is expected to remain limited, and with the manufacturing peak season approaching, strong demand for compounding ABS and PS is anticipated to continue.

The phenol derivatives division, centered on BPA and epoxy, recorded sales of 531.6 billion KRW and operating profit of 193.2 billion KRW, while profitability in other sectors such as fine chemicals and energy also improved overall. Phenol derivatives are also expected to see limited supply and strong demand in the second quarter.

Based on the solid profitability of its core business divisions, Kumho Petrochemical plans to build new profit models through gradual structural improvements going forward. Last year, the company laid the foundation for growth by succeeding in the development and commercialization of CNT materials for electric vehicle batteries in its carbon nanotube (CNT) research division, which is a key anode material for secondary batteries. Additionally, Kumho P&B Chemicals is expanding its capabilities in eco-friendly and advanced technologies by focusing on the carbon-neutral trend and strengthening the competitiveness of epoxy products used in wind turbine blades and hydrogen electric vehicle materials.

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