Industrial Materials Sector Shows Growth in Tire Cord and Aramid
Chemical Sector Maintains Steady Sales Despite Economic Downturn Concerns
Fashion Sector Achieves Record High Sales in Q3
Film and Electronic Materials Sector Experiences Performance Decline Due to Facility Operation Rate Adjustment
[Asia Economy Reporter Choi Seoyoon] Kolon Industries announced on the 8th that its preliminary Q3 results showed sales of 1.2589 trillion KRW and operating profit of 51 billion KRW. Sales increased by 13% compared to the previous year, but operating profit decreased by 36.7% during the same period.
Kolon Industries explained the decline in operating profit as "the impact of external adverse factors such as decreased demand from customers in the film and electronic materials sectors and prolonged city lockdown measures in China." Sales grew compared to a year ago, supported by growth in key industrial materials products such as tire cords and aramid in the manufacturing sector, as well as steady sales growth in the chemical and fashion sectors.
The industrial materials sector is led by growth in tire cords and aramid. Tire cords continue to grow due to reduced freight costs and steady demand for replacement and new car tires. The expansion of the Vietnam plant in September is expected to further increase sales and profits in the future. Aramid achieved strong performance driven by growth in the 5G optical cable reinforcement market and increased demand for hybrid tire cords and high-performance brake pads due to the expansion of the electric vehicle market. The completion of the Aramid Double-Up expansion in the second half of next year is expected to positively impact sales and operating profit.
In the chemical sector, petroleum resin demand remains stable with steady raw material prices, but epoxy resin sales and operating profit declined due to weakened demand caused by lockdowns in China, a major export market. The film and electronic materials sector saw decreased performance due to reduced demand amid global economic recession concerns and adjustments in facility operating rates caused by customer inventory reductions.
The fashion sector recorded its highest-ever sales in Q3. Despite the off-season, all brands showed steady growth led by outdoor and golf, focusing on branding and product competitiveness improvement. Kolon Sports attracted both existing customers and new MZ generation customers through strengthening strategic product competitiveness and sustainable outdoor branding. Golf brands such as Zipore contributed to sales improvement with differentiated designs, and existing menswear, womenswear, and accessories also continued steady sales growth.
A Kolon Industries official said, “Despite the difficult situation, tire cords and aramid are holding up well, raw material prices and logistics costs continue to decline, and we expect performance to improve in Q4, the traditional peak season for the fashion sector.”
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