Kolon Industry Posts Q2 Operating Profit of KRW 98.7 Billion, Up 118% Year-on-Year

Balanced Sales Growth in Industrial Materials Segment

On August 7, Kolon Industry announced its preliminary consolidated results for the second quarter, recording sales of KRW 1.3565 trillion and operating profit of KRW 98.7 billion.

Sung Hur, President and CEO of Kolon Industries. Provided by Kolon Industries

Despite heightened external volatility, such as increases in raw material prices, the company achieved robust growth driven by expanded sales of core materials including airbags, tire cord, and aramid; increased revenue from chemical products; and brand-by-brand growth in the fashion segment. Compared to the same period in the previous year, sales and operating profit rose by 7.8% and 118%, respectively.

Growth also continued compared to the previous quarter. Kolon Industry reduced aramid business losses through operational efficiency improvement projects and benefited from the peak season in the fashion segment, resulting in quarter-on-quarter increases of 9.6% in sales and 59.5% in operating profit.

In the industrial materials segment, sales of major products increased compared to the previous quarter. Tire cord, in particular, improved profitability by increasing the proportion of hybrid products sold, while aramid posted higher sales year-on-year and quarter-on-quarter due to improved utilization rates. The chemical business achieved increases in both sales and operating profit, compared to both one year and one quarter earlier, supported by stronger demand for petroleum resins in downstream industries and increased sales of other high-value-added products.

The fashion division showed balanced growth across major product categories, including outdoor, golf, and menswear, as consumer sentiment recovered. Strengthened sales strategies focused on new products and operational efficiency gained through organizational integration contributed to improved results.

A Kolon Industry representative stated, "Even in a climate of ongoing external uncertainty, we are seeing the results of business structure improvements and product portfolio diversification driven by operational efficiency. In the second half, we will continue to focus our capabilities on our core businesses to lay the foundation for sustained growth."

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