Songwon Industrial Group announces a solid financial performance in Q3 2012

Ulsan, Korea – November 12, 2012 – Songwon Industrial Group (www.songwon.com), the second largest manufacturer of polymer stabilizers in the world and a leading global producer and supplier of additives and other chemicals to the plastic industry, announces total sales revenues of 528’044 Mil. KRW for the first nine months of 2012 and a net profit after tax of 16’466 Mil. KRW (3.1% of sales), of which 5’697 Mil. KRW was contributed in Q3 2012. Compared to the same period in 2011 (annualized figures), in the first nine months of 2012 Songwon Group has achieved a sales growth rate of 11.9%, a gross profit growth rate of 46%, while the net profit jumped 118%.

All three quarters of 2012 have shown strong sales performance. Consolidated gross profit margin increased to 19.2% during the first nine months of 2012 compared to 14.6% for FY 2011. The development of the gross profit margin continues on a positive trend and has increased by 2.3% points from 19.0% in Q2 2012 to 21.3% in Q3 2012. EBIT margin in Q3 2012 decreased to 7.0% from 7.8% in Q2 2012, mainly because of unfavourable currency developments.

Jongho Park, Chairman and CEO and Head of the Songwon Industrial Group Executive Committee, stated: “In spite of the challenging economic environment, which is also starting to affect the emerging economies, we continue to deliver a good performance which is reflected in a solid third quarter with significant increases year to date in both margin and profit. Polymer Stabilizers continue to be a growth driver, offsetting the downturn we have seen in single instances in other businesses. We are particularly pleased with the customer acceptance of our investment in OPS (One Pack Systems) which has led to the doubling of the capacity at our facility in Greiz, Germany. Additionally the establishment of Songwon Additives Technology AG, a Joint Venture between Songwon Industrial Group, Pan Gulf Holdings of Saudi Arabia and Polysys Industries of Abu Dhabi, for the manufacture and sale of Songnox® OPS was a key accomplishment in Q3 2012 and a cornerstone of our strategy to establish a global network with regional OPS manufacturing units.”

Hans-Peter Wüest, Chief Financial Officer and Member of the Songwon Industrial Group Executive Committee, added: “Most recently we have announced a 60% increase in production capacity of Songstab™ and Songcat™ organotin heat stabilizers at the Ulsan manufacturing facility. Also, in the third quarter we announced a collaboration with SABO SpA, based in Levate, Italy, which fulfils a further milestone in our long-term strategic ambition to create the second largest global supplier of HALS (Hindered Amine Light Stabilizers). We are pleased to see that the continued focus and effort we have dedicated to the implementation of our strategy is helping us to deliver solid results. This is enabling us to invest in growth for the benefit of our customers.“

Further details of the Songwon Industrial Group Q3 results can be found on the Songwon website. www.songwon.com/en/investors/financialresults. Songwon’s results will be available at the end of each quarter following the current report.

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About Songwon Industrial Co., Ltd.
Songwon Industrial Co., Ltd. is a leading producer and seller of Songnox® Antioxidants, Songnox® One Pack Systems, Sabostab® and Songlight® Hindered Amine Light Stabilizers, Songsorb® Ultraviolet Light Absorbers, Songstab™ Acid Scavengers, Songstab™ PVC Stabilizers, Songcat™ Tin Intermediates, Songcizer™ Plasticizers for the plastics industry, as well as lubricants, surface coating agents, polyurethane, alkyl phenols, biphenol, flocculants and other chemicals. The Songwon Group of Companies includes Songwon Industrial Co., Ltd., Songwon Holdings AG, Songwon International AG, Songwon International – Japan K.K., Songwon China Ltd., Songwon Industrial Co. Ltd. Representative Office Bahrain, Songwon Additive Technologies AG, Songwon ATG GmbH, Songwon International – Americas Inc., Songwon International – India Pvt. Ltd., Songwon Trading Co. Ltd, Songwon Chemicals Co. Ltd. and Songwon Baifu Chemicals (Tangshan) Co., Ltd.

Songnox, Songsorb and Songlight are registered trade marks of Songwon Industrial Co., Ltd.
Songcat, Songcizer and Songstab are trade marks of Songwon Industrial Co., Ltd.
Sabostab is a registered trade mark of Sabo S.p.A.

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This release was published on openPR.