Operating Profit of 184.5 Billion KRW on a Consolidated Basis... 26.6% Increase from the Previous Year
Korea Zinc, the world's largest non-ferrous metal smelting company, announced on the 4th that it increased its operating profit by more than 20% in the first quarter of this year compared to the previous year, despite an unfavorable business environment including the global economic downturn and a decline in zinc prices.
Korea Zinc recorded sales of KRW 1.8136 trillion and an operating profit of KRW 190.7 billion on a separate basis in the first quarter of this year. Sales were maintained at a level similar to the same period last year (KRW 1.8149 trillion), and operating profit increased by 23.1% compared to the same period last year. The operating profit margin was 10.5%.
On a consolidated basis, sales were KRW 2.3754 trillion, and operating profit was KRW 184.5 billion. Compared to the same period last year, sales decreased by 6%, while operating profit increased by 26.6%.
Korea Zinc explained that profitability improved due to the combined effects of increased production and sales of copper (lead), rising precious metal prices driven by central banks' gold accumulation worldwide, reduced manufacturing costs, and exchange rate increases.
By product category, sales of copper significantly increased compared to the same period last year due to expanded production and sales. Silver (銀) also contributed to improved performance as sales increased due to the rise in precious metal prices.
In the case of zinc, sales decreased compared to the previous year due to a decline in international selling prices. Korea Zinc stated, "However, zinc has shown a positive rebound trend since March as concerns over demand decline caused by stagnation in downstream industries such as steel have gradually eased."
The London Metal Exchange (LME) zinc price exceeded $3,000 per ton at the beginning of last year but fell to the $2,500 range at the beginning of this year, one year later, and dropped to an average of $2,364 in February. However, it rebounded to $2,462 in March and rose to $2,730 in April.
A Korea Zinc official said, "In addition to the rising prices of zinc and copper, the trend of increasing demand for precious metals is expected to continue," adding, "We expect to maintain a solid performance trend."
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