Songwon Industrial Group reports sales decrease for Q1 2014

• Sales decline of -6.6% in 2014 compared to 2013
• Gross profit of 20,327 Mil. KRW, a 37.1% decrease from 2013
• Positive outlook into Q2 with orders on hand stronger than in Q1

Ulsan, Korea – May 15, 2014 – Songwon Industrial Group (www.songwon.com) today reported its audited results for Q1 achieving sales of 162,899 Mil. KRW. This is a -6.6% decrease versus the same period last year and a -3.6% slip compared to sales of the previous quarter. The result is mainly due to the unusual global economic situation driven by low economic activity combined with high volatility at the end of 2013. Customers were reducing inventories and were placing orders with shorter lead times than usually.

Overall, Songwon’s Q1 2014 sales continue to run steadily with only a few exceptions. Polymer Stabilizers sales increased by 517 metric tons (+2.9%) driven by Main AO’s & Blends, Light Stabilizers, Niche AO’s & Blends and Thioesters. On the other hand, due to the discontinuation of certain alkyl phenols and aminic AO‘s (non-core products), sales of these product groups decreased.

In Q1 2014, gross profit was 20,327 Mil. KRW – down -37.1% compared to Q1 2013
(32,341 Mil. KRW). In Q1 2014, the gross profit margin decreased from 18.5% to 12.5% in Q1 2014 as a result of lower overall sales volumes and lower sales prices (driven by competitive pressure for the Polymer Stabilizer business), higher raw material prices and lower plant utilization (lower costs absorption).

Commenting Hans-Peter Wüest, Chief Financial Officer and Member of the Songwon Industrial Group Executive Committee, said: “The economic environment remains challenging. However, based on predictions for gradual economic strengthening for Q2 2014 and the remainder of the year, we are optimistic about seeing improvements. Nevertheless, to address the challenges our businesses are facing, we have identified areas for further streamlining and improvement and these actions are starting to have a positive effect. Heading into the next quarter of 2014, order levels are much stronger than we saw in Q1 2014 and the current year-end outlook remains positive.”

The Q1 Report can be downloaded at: www.songwon.com/en/investors/financialresults.

About Songwon Industrial Co., Ltd.
Songwon Industrial Co., Ltd. is a leading producer and seller of SONGNOX® Antioxidants, SONGNOX® One Pack Systems, SABO®STAB Hindered Amine Light Stabilizers, SONGSORB® Ultraviolet Light Absorbers, SONGXTEND™ Stabilizer Solutions, 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, 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 Additive Technologies-Americas Inc., 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., Songwon Additive Technologies - Middle East FZE, Polysys Additive Technologies – Middle East LLC and Chemservice Asia Co. Ltd.

SONGNOX and SONGSORB are registered trade marks of Songwon Industrial Co., Ltd.
SONGCAT, SONGCIZER, SONGSTAB and SONGXTEND are trade marks of
Songwon Industrial Co., Ltd.
SABOSTAB is a registered trade mark of Sabo S.p.A.

Salient in Additives
Salient from the Latin Verb ‘salire’ to leap or leaping. As an adjective, meaning the most noticeable, prominent or important. Salient Songwon, leaping ahead in the world of Polymers; a prominent global supplier of chemical additives.

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This release was published on openPR.