Kumho Petrochemical Q2 Operating Profit 107.9 Billion KRW...69.5% Decrease

Sales Decreased by 29.7% to 1.5781 Trillion Won

Kumho Petrochemical announced on the 4th that it recorded consolidated sales of 1.5781 trillion KRW and an operating profit of 107.9 billion KRW in the second quarter of this year. Sales decreased by 29.7%, and operating profit fell by 69.5%. Net profit was 117.4 billion KRW, down 59.1%.

By business segment, the synthetic rubber division's operating profit was 32.9 billion KRW, down 67.2% from 100.3 billion KRW in the same period last year. Despite expanded product margins, the high input cost of synthetic rubber raw material butadiene (BD) resulted in minimal profit improvement. Sales volume declined due to weak demand for NB latex, a key material for sanitary gloves, and competition among suppliers in the market intensified.

[Photo by Kumho Petrochemical]

The synthetic resin division's operating profit plunged 96.5% to 1.1 billion KRW. Continued weak product demand and raw material input costs higher than market prices led to decreased profitability. The phenol derivatives division's operating profit was 6.0 billion KRW, down 93.9% from 98.6 billion KRW the previous year, due to reduced sales from scheduled maintenance and sluggish demand in downstream businesses.

The functional synthetic rubber (EPDM) and eco-friendly rubber (TPV) division recorded an operating profit of 33.4 billion KRW, down 31.1%, while the precision chemicals, energy, and other divisions posted an operating profit of 34.5 billion KRW, down 53.9%.

Kumho Petrochemical stated, "We expect weak demand to continue across petrochemical products in the third quarter as well," adding, "We will focus on defending profitability through sales of high value-added products."

Q2 Business Performance This Year [Image Source=Kumho Petrochemical]

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