Kolon Plastics Reports Operating Profit of 8.9 Billion KRW in Q2, Down 21.9%

Raw Material Price Drop Leads to Sales Price Decline
"We Will Expand High-Value Specialty Products"

Kolon Plastics announced on the 4th that it recorded consolidated sales of 116.3 billion KRW and an operating profit of 8.9 billion KRW for the second quarter of this year. These figures represent decreases of 11.7% and 21.9%, respectively, compared to the previous year.

Kolon Plastics analyzed, "Concerns over economic slowdown increased inventory burdens for global market customers, leading to weak demand and intensified price competition, which resulted in decreased performance."

It added, "In the domestic market, although overall sales volume increased due to higher automobile production, the decline in raw material prices also led to reduced selling prices, which was the main factor for the profit decrease."

Kolon Plastics 'CHINAPLAS 2023' Exhibition Booth View
[Photo by Kolon]

Kolon Plastics expects that in the second half of the year, conditions in the upstream markets such as electrical and electronic products and household goods will remain similar to those in the first half, while the automobile market will continue to experience favorable business conditions. The company anticipates improved profitability through enhanced cost competitiveness.

A Kolon Plastics representative stated, "Despite sluggish upstream markets, the profitability of the Polyoxymethylene (POM) business division remains solid compared to the past due to a higher proportion of high value-added markets," and added, "We will improve the quality of earnings by expanding the sales proportion of relatively higher-priced specialty products."

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