openPR Logo
Press release

SONGWON Industrial Group releases Financial Results for Q2/2017

08-15-2017 03:10 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Songwon Industrial Co., Ltd.

/ PR Agency: Marketing Solutions
• Sales in Q2 totaled 186,742 Mil. KRW
• Net profit amounted to 12,279 Mil. KRW
• The gross profit margin is at 23.6%

Ulsan, South Korea – August 15, 2017 – Today, SONGWON Industrial Group (www.songwon.com) released its financial results for the second quarter of 2017. The Group reported consolidated sales of 186,742 Mil. KRW and a net profit margin of 6.6% for Q2 - a decrease of 2.1% compared to Q2/2016. For the first half of the year, the Group realized consolidated sales of 361,707 Mil. KRW which is a -0.1% decrease compared to the first six months of 2016 (362,145 Mil. KRW).

SONGWON’s business delivered according to expectations during the first half year 2017, and in terms of volumes the Group saw double digit growth in some product lines compared to Q2/2016. Although Q1/2017 revenues declined, as a result of the price concessions implemented in response to increased price competition pressure in the second half of 2016, SONGWON managed to reverse the trend in Q2/2017 by successfully implementing price increases where contracts allowed. Overall, the first half year 2017 showed stable growth in line with the Group’s expectations in a market perceived by the organization to be quite balanced particularly for antioxidants.

As a result of both sustained market demand and a generally balanced supply situation, SONGWON continued to see strong demand across all the global regions. The Group also reports that the demand in polymer stabilizers, particularly in the Americas is increasing notably as a result of the polyolefin capacities that are now coming onstream. However, with the global economy remaining uncertain, currency developments were difficult to predict which had a negative impact on the Group’s financial results throughout Q2/2017.

Throughout Q2/2017, all of SONGWON’s manufacturing facilities ran steadily at high capacity utilization levels without disruption which ensured an optimal cost position for the Group. Compared to the previous quarter, the positive trends already described regarding the implemented price increases, as well as the high capacity utilization from the production sites led to an increase in the EBITDA and EBIT margins in Q2/2017 to 14.1% and to 9.9% respectively.

SONGWON extended its antioxidant range for fuels and lubricants in the second half of 2016 and introduced SONGNOX® L670 which has been well-received by customers. The organization now also has a world scale plant for its new aminic product range starting up production in Ulsan in Q3/2017. This, together with other developments, gives SONGWON good reason to expect continuous growth providing the demand remains at stable levels. From an historical perspective, Q2 has been a strong quarter and the Group expects to see the general demand for its products steadily increase in 2017 at a rate which slightly exceeds the global GDP.

However, with the overall global economic situation remaining volatile combined with the high levels of political uncertainty and instability in various regions across the world, SONGWON will remain cautious, as well as vigilantly aware of the potential for negative surprises. The Group will continually review situations as they arise and ensure that it has solid contingency plans in place, while exercising the prudent management of its capital and continue to progress with various initiatives to maintain profitability.

The Q2 Report can be downloaded at: www.songwon.com/en/investors/financialresults.

About SONGWON Industrial Co., Ltd.
SONGWON, which was founded in 1965 and is headquartered in Ulsan, South Korea, is a leader in the development, production and supply of specialty chemicals. The second largest manufacturer of polymer stabilizers worldwide, the SONGWON Industrial Group operates companies all over the world, offering the combined benefits of a global framework and readily accessible local organizations. Dedicated experts work closely together with customers to develop tailor-made solutions that meet individual requirements.
For further information, please go to: www.songwon.com.

Box 6
2950
Kapellen
Belgium
003233130311

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release SONGWON Industrial Group releases Financial Results for Q2/2017 here

News-ID: 668969 • Views: 527

More Releases from Songwon Industrial Co., Ltd.

SONGWON invests in capacity expansion for semiconductor chemicals production
Ulsan, South Korea – November 19, 2021 – Today, Songwon Industrial Co., Ltd. announced that it is investing in expanding its chemical production capacity for semiconductors. As the 4th Industrial Revolution progresses, demand for semiconductors is rising rapidly and with it, customer demand for high-end specialty chemicals and raw materials for IT industries (incl. semiconductors) as well as display materials is growing significantly. SONGWON’s capacity increase investment in the main chemicals
SONGWON enters two new distribution agreements with Bodo Moller Chemie
Ulsan, South Korea - May 19, 2020 - SONGWON Industrial Co., Ltd. announced today that it has signed two exclusive distribution agreements for the distribution of its comprehensive range of polymer stabilizers: Bodo Moller Chemie Benelux N.V. has been supplying customers in Belgium, Luxemburg and the Netherlands since January 1, 2020, and Bodo Moller Chemie UK Ltd took on responsibility in the United Kingdom and Ireland on May 1. Based in
SONGWON deeply saddened by unexpected death of CEO Maurizio Butti
Ulsan, South Korea – September 10, 2019 – The Board of Directors of SONGWON Industrial Group announced today, with deep sadness, the unexpected death of the company’s CEO, Maurizio Butti on Saturday, September 7th, 2019. Commenting, Jongho Park, Chairman of the Board said: “The entire SONGWON family mourns the sudden loss of our CEO. With the organization since 2006, Maurizio was an inspiring leader, managing the company with humor, integrity and
SONGWON announces new appointments in key leadership positions
Ulsan, South Korea – April 02, 2019 – SONGWON Industrial Co., Ltd. today announced leadership changes which enhance and expand the Company’s management team and optimally position the organization for continued value creation. Elena Scaltritti assumes the position as Division Leader of Industrial Chemicals for SONGWON which includes the Polymer Stabilizers and Fuel and Lubes businesses. She has also been appointed a member of the Executive Committee. Gerard Mulqueen will

All 5 Releases