Kumho Petrochemical Posts Q3 Operating Loss of 20.8 Billion Won, Swings to Loss on Weak Demand

[Financial News] Kumho Petrochemical posted an operating loss of 20.8 billion won on a consolidated basis in the third quarter of this year, swinging to a loss from a year earlier. 
On the 6th, Kumho Petrochemical said consolidated revenue for the third quarter was 1.9215 trillion won, up 16.9% from a year earlier. Operating results swung from a profit of 84.5 billion won in the same period last year to a loss of 20.8 billion won. It posted a net loss of 22 billion won.
Compared with the previous quarter, revenue fell 15.3%, and operating profit swung to a loss from 339 billion won.
The synthetic rubber division posted revenue of 782.4 billion won and operating profit of 2.3 billion won. Reverse-lagging effects from inventories of high-cost raw materials narrowed product spreads. Intensified price competition in NB latex, a raw material for nitrile gloves, also weighed on profitability.
The synthetic resins division posted revenue of 311.5 billion won and an operating loss of 13.9 billion won. Weak end-user demand and soft product prices persisted, particularly for high-value-added synthetic resins (ABS).
The phenol derivatives division swung to an operating loss of 62.5 billion won on revenue of 432.1 billion won. Weak demand from downstream industries delayed the depletion of inventories of key products, while narrower spreads due to reverse lagging also had an impact.
Kumho Petrochemical expects profitability in its synthetic rubber division to improve in the fourth quarter of this year, supported by lower volatility in raw material prices and higher NB latex sales volumes.

[email protected] Kim Mi-hee Reporter