Kolon Industries announced on August 7 that its preliminary consolidated results for the second quarter showed sales of 1.3565 trillion won and an operating profit of 98.7 billion won. Both sales and operating profit increased by 7.8% and 118%, respectively, compared to the same period last year.
Despite rising raw material costs and increased external volatility, the company achieved solid growth due to expanded sales of key materials, increased chemical product sales, and steady growth across various fashion brands.
The company also continued its growth trend compared to the previous quarter. Kolon Industries reported a 9.6% increase in sales and a 59.5% increase in operating profit from the previous quarter, driven by an operational efficiency (OE) project that reduced losses in aramid and seasonal strength in the fashion sector.
In the industrial materials sector, sales of key products such as airbags, tire cords, and aramid increased compared to the previous quarter. Notably, the profitability of tire cords improved due to a higher proportion of hybrid product sales, while aramid sales rose due to improved facility utilization compared to both the previous year and the previous quarter.
The chemicals sector also saw increases in both sales and operating profit compared to the previous year and the previous quarter, driven by growing demand in the upstream industries for petroleum resins and increased sales of other high-value products. The CPI also contributed to profit growth as its utilization rate improved.
The fashion sector experienced balanced growth across major categories such as outdoor, golf, and menswear, supported by a recovery in consumer sentiment. Strengthening sales strategies focused on new products and operational efficiencies from organizational integration led to improved performance.
This performance is significant as all major business divisions—industrial materials, chemicals, and fashion—showed growth, indicating a more stable business portfolio. However, fluctuations in raw material prices and global economic slowdowns are cited as uncertainties that could impact performance in the second half of the year.
A Kolon Industries representative stated, "Even amid ongoing external uncertainties, improvements through OE and diversification of our product portfolio are yielding results. We will continue to focus our capabilities on core businesses to establish a foundation for sustained growth in the second half of the year."
* This article has been translated by AI.
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