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[Alpha Biz=(Chicago) Reporter Kim Jisun] OCI announced on the 6th that its consolidated operating profit fell 44% year-on-year to 119.3 billion won last year. Sales fell 6 percent to 2.253 trillion won over the same period.
As of the fourth quarter of last year, operating profit was KRW 20.4 billion, down 7.4% from the previous quarter. Sales rose 10.3% to 496.4 billion won. As of May 1, last year, OCI was divided into OCI Holdings, a holding company, and OCI, a new chemical company. Sales and operating profit decreased by 11% and 65%, respectively, compared to the same period and performance of the previous year.
"Sales declined due to the global economic slowdown and sluggish semiconductor market," OCI President Kim Yoo-shin said in a conference call for earnings announcement, "The worsening cost structure due to one-off costs and higher power costs due to the split in May last year have affected the decrease in operating profit."
Although overall market conditions continue to remain sluggish in the first quarter of this year, OCI predicted a gradual recovery from the second quarter as semiconductor inventories are decreasing.
It is also planning to expand its new business this year. OCI plans to establish a production plant in Malaysia after completing the establishment of a semiconductor polysilicon joint venture with Japan's Tokuyama within the first half of this year. Construction of a special material plant for secondary battery cathode materials will also begin in the first quarter and set the stage for mid- to long-term growth.
Meanwhile, OCI decided on a settlement dividend of 2,000 won per common stock to enhance shareholder value. The total dividend is 14.8 billion won. The dividend payout ratio is 28.2 percent.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
