Kolon Industries Reports Q3 Operating Profit of 26.9 Billion Won, Down 12.8% Year-on-Year

63 Consecutive Profitable Quarters

Kolon Industries announced in a regulatory filing on November 12 that, on a consolidated basis for the third quarter, its sales and operating profit were tentatively calculated at 1.1806 trillion won and 26.9 billion won, respectively. Sales increased by 3.2% compared to the same period last year, while operating profit decreased by 12.76%.

A Kolon Industries representative explained, "The increase in sales of automotive materials and components, as well as the expanded sales of phenolic resin and materials for artificial intelligence (AI) semiconductors, drove the growth in sales. However, operating profit was slightly affected by the off-season in the fashion sector and a decline in performance in other divisions, despite strong profitability in the chemical segment."

The industrial materials division achieved stable sales thanks to the growth of the automotive materials and components business and strong performance from subsidiaries. The aramid business has been narrowing its losses by improving its operating rate through aggressive volume procurement, and the tire cord business continues to expand its sales.

The chemicals division saw a significant improvement in profitability year-on-year and quarter-on-quarter, driven by increased demand for phenolic resin due to the robust shipbuilding market and new sales of 5G communication materials.

The fashion division was partially impacted by the continued weakening of consumer sentiment in fashion, and its deficit widened slightly due to fixed costs and ongoing promotions. Meanwhile, Kolon Sports continued its explosive growth in the third quarter, with a year-on-year sales growth rate of 84%, following a strong performance in the first half of the year.

A Kolon Industries official stated, "Kolon Industries has maintained a streak of 63 consecutive profitable quarters since its establishment, without a single loss, by implementing company-wide Operation Excellence (OE) initiatives to reduce costs and expanding sales of high value-added products such as mPPO, an AI semiconductor substrate material. We will continue to lay the foundation for sustainable growth by improving the profitability of each business segment."

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