[Alpha Biz=(Chicago) Reporter Paul Lee] Kumho Petrochemical announced on the 3rd that its consolidated operating profit in the third quarter of this year was KRW 84.2 billion, down 63.5% from the same period last year.

Sales fell 20.1% year-on-year to 1.57 trillion won. Net profit fell 50.8 percent to 13.7 billion won.

The operating profit was in line with the market forecast of KRW 84.2 billion compiled by Yonhap Infomax.

By business sector, sales and operating profit in the synthetic rubber sector stood at 57.1 billion won and 15 billion won, respectively. Due to weak demand in front-line industries, sales and profitability declined due to insufficient increase in sales prices compared to the rise in raw materials.

In the case of NB Latex, its flagship product, its profitability fell due to intensifying competition among suppliers.

Sales in the synthetic resin sector were 305 billion won and operating profit was 1.2 billion won. Due to sluggish demand and oversupply due to new high value-added synthetic resins (ABS) in China, product price hikes were limited.

The phenol derivatives division recorded sales of 337 billion won and operating loss of 4.1 billion won. Sales and profitability declined due to a delay in recovering demand for major products.

Kumho Petrochemical said, "Although demand for products is expected to continue to remain sluggish in the fourth quarter, we will push to improve profitability by strengthening our portfolio by market and product."

 

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