Kumho Petrochemical has reported a shift to an operating loss in the third quarter of this year due to weak demand in upstream industries and declining product prices.
On November 6, Kumho Petrochemical announced that its consolidated sales for the third quarter reached 1.92 trillion won, with an operating loss of 20.8 billion won. While sales increased by 16.9% compared to the same period last year, operating profit fell from 84.5 billion won to a loss. The company also recorded a net loss of 22 billion won.
By business segment, the synthetic rubber division reported sales of 782.4 billion won and an operating profit of 2.3 billion won. The profitability was impacted by a narrowing spread due to high-cost raw material inventories and intensified price competition in NB latex.
The synthetic resin division saw sales of 311.5 billion won and an operating loss of 13.9 billion won, affected by weak actual demand and declining product prices, particularly in acrylonitrile butadiene styrene (ABS).
The phenolic derivatives division reported sales of 432.1 billion won and an operating loss of 62.5 billion won, as weak demand in upstream industries delayed inventory depletion of key products and contributed to a narrowing spread.
In contrast, the EPDM & TPV division maintained profitability with sales of 210.4 billion won and an operating profit of 24.3 billion won. The other segment also achieved an operating profit of 29 billion won, supported by improved profitability in its energy business.
A Kumho Petrochemical official stated, "We expect demand to continue to weaken in the fourth quarter due to the year-end off-season, but we anticipate some improvement in profitability in certain business segments due to reduced volatility in raw material prices and the resolution of lagging effects."
* This article has been translated by AI.
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