Kolon Plastic, 2Q Operating Profit Turns Positive... Record High Sales Achieved

[Asia Economy Reporter Hwang Yoon-joo] Kolon Plastics succeeded in turning a profit in the second quarter of this year. Sales exceeded 100 billion KRW for the first time since its establishment.

Kolon Plastics announced on the 3rd that its consolidated operating profit turned positive at 8.3 billion KRW. During the same period, sales were tentatively recorded at 100.1 billion KRW, an increase of 87.7%.

Kolon Plastics explained that it achieved its highest quarterly business performance thanks to the growing demand for engineering plastics. Despite one-time factors such as retroactive wage increases for employees and partner companies due to wage negotiations with the newly established labor union being settled in the second quarter, operating profit turned positive compared to the same period last year, recording the highest performance.

It is also noteworthy that growth in the second quarter continued following the first quarter. Although raw material prices and maritime freight costs increased significantly, increasing cost burdens, sales rose by 5% compared to the previous quarter due to price increases driven by favorable market conditions and cost reductions from higher operating rates in the compound business division. Operating profit and net income increased by 21% and 41%, respectively.

Kolon Plastics expects strong demand to continue in the future and stated that it will continue to expand its business into global automotive, premium home appliances, and medical devices through a high-value-added customer diversification strategy.

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