Kolon Co., Ltd. Q1 Sales 1.3 Trillion Won... Operating Profit Down 47%
Kolon Corporation announced on the 16th through its quarterly report that it recorded sales of 1.397 trillion KRW, operating profit of 24.3 billion KRW, and a net loss of 6.1 billion KRW for the first quarter of 2024.
Compared to the same period last year, sales increased by 67.6 billion KRW (+5.1%), while operating profit and net income decreased by 22.1 billion KRW (-47.6%) and 43.8 billion KRW (turning to a loss), respectively. Despite a complex global economic crisis, sales slightly increased as major subsidiaries achieved favorable results. Operating profit and net income declined compared to the previous year due to sustained high cost ratios and uncertainties in the financial market, which dampened profitability.
Kolon Mobility Group experienced a slight slowdown in performance due to prolonged high interest rates and consumer recession leading to decreased new car sales, but demand for certified used car sales and automobile maintenance increased. Currently, it operates a total of 9 premium brands and 109 networks, and plans to continue expanding customer touchpoints by opening a new AS center in the metropolitan area in the second quarter.
Kolon Global saw profitability decline due to rising construction costs and financial expenses, but recorded new orders worth 1.5608 trillion KRW this quarter, with about 900 billion KRW coming from general construction and plants, thereby increasing the order share in the non-residential sector.
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Kolon Industries, an equity-method affiliate, saw sales and operating profit decrease compared to the same period last year due to one-time costs related to the film joint venture and the off-season in fashion. However, demand for its core product, the super fiber aramid, remained solid, and performance improved compared to the previous quarter due to increased demand for petroleum resin products such as phenolic resin and a decline in export freight rates. Kolon Industries expects gradual performance recovery in the second quarter with increased tire cord demand, completion of PMR (high-purity petroleum resin) expansion, and the fashion industry's semi-peak season.
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