Kumho Petrochemical Q2 Operating Profit 120.1 Billion KRW... 13% Decrease YoY

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical announced on the 7th that its consolidated operating profit for the second quarter of this year was 120.1 billion KRW, a 13% decrease compared to the same period last year. During the same period, sales amounted to 1.0263 trillion KRW, down 20.6%, and net profit decreased by 13.4% to 99.8 billion KRW.

A Kumho Petrochemical official explained, "Sales volume and revenue declined due to reduced operating rates and weak demand from tire manufacturers caused by the COVID-19 pandemic," adding, "We defended profitability by securing NB latex profitability amid increased demand for hygiene products."

He continued, "In the third quarter, prices are expected to rebound due to decreased regional supply caused by increased domestic consumption in North America, and demand recovery is anticipated with the resumption of tire manufacturers' operations."

Specifically, within the synthetic resin sector, food containers and disposable plastics maintained profitability due to strong demand, while other businesses saw declines in sales and profitability due to regular maintenance and lower selling prices.