Kolon's profit drops 11.8% in 2020

Kolon Industries said on Thursday that it has posted 4.03 trillion won in sales and 152.4 billion won in operating income for the entire year of 2020. It is a decline of 8.4% and 11.8%, respectively, from 2019.

For the fourth quarter alone, the company recorded sales of 1.14 trillion won and operating income of 60.4 billion won, a rise of 1.3% and 435.5%, respectively, from the same time period a year ago.

Kolon said its fourth quarter sales grew thanks to its fashion business entering the on-season and recovery in demand for automobile materials. Operating income was helped by the recovery in industrial materials, continued profitability from chemical and film businesses, as well as the fashion business returning to the black.

The company said it plans to overcome external risks through a focus on new businesses and high value products.

Its aromatic amide business was in full swing thanks to growth in the high value IT infrastructure market, including 5G cables, Kolon said. It was seeing increased sales and profitability in the business, the company said.

Kolon will also double the production rate of its tire cord factory at Vietnam to 16,800 metric tonnes. The expansion of the factory will be completed next year.

The company is expecting its new business areas such as polymer electrolyte membrane and membrane humidifier. Increased outdoor activities this year after the first waves of COVID-19 pandemic last year is also expected to boost its fashion business, Kolon said.