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[Alpha Biz=(Chicago) Reporter Kim Jisun] Major Korean construction materials companies' third-quarter earnings were mixed, a report showed.
According to the Financial Supervisory Service's electronic disclosure system on the 17th, KCC's consolidated operating profit for the third quarter of this year was 88.4 billion won, down 8.2% from the same period last year. Sales also fell 10.8 percent year-on-year to 1.5527 trillion won during the same period. However, its net profit reached 11.2 billion won, turning into a surplus compared to the third quarter of last year.
The decline in KCC's performance is due to the deterioration of the silicon industry. As the global economy stagnated and China, the largest producer of silicon, supplied silicon in large quantities, product prices plunged, adversely affecting its performance. However, KCC's decline in third-quarter earnings is partly due to the base effect of achieving its biggest performance last year by acquiring Momentum, one of the world's largest silicon companies, in 2019. After the acquisition of Momentive, the proportion of silicon in total sales increased from 10% to 60%.
LX Hausys saw its consolidated sales fall 5.4 percent on-year to 864.2 billion won in the third quarter, but its operating profit rose 130.9 percent on-year to 35.4 billion won. Net profit also rose 164.6% to 27.9 billion won.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
