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Songwon Industrial Group releases third quarter results

Monday, November 13, 2017
Ulsan, South Korea – Songwon Industrial Group announced its results for the third quarter of 2017. In the third quarter, gross profit amounted to KRW 38,621 million, and the group reported sales totaling KRW 180,832 million, an increase of 6.0 percent over the third quarter of 2016. Songwon achieved sales of KRW 542,539 million (YTD September 2016: 532,727 million) in the nine months ended September 30, 2017 and recorded a net profit of KRW 30,036 million (YTD September 2016: KRW 38,150 million). In general, Songwon saw the strong demand continued across all global regions, and in terms of volumes and sales, the group’s performance continued to remain in line with the market expectations. During the third quarter of 2017, Songwon noted sales positively impacted by the price increases it had implemented in the second quarter for renegotiated contracts and the strengthening of the EUR against the USD and KRW. Overall, in the current market which is considered to be quite balanced, particularly for antioxidants, the group recorded stable growth in line with its expectations throughout the first nine months of 2017. In the Americas, although demand is growing noticeably, particularly for polymer stabilizers, demand decreased briefly in the region during the third quarter of 2017 due to Hurricane Harvey. During the third quarter 2017, Songwon’s manufacturing facilities ran steadily and with high capacity utilization levels, which led to a solid cost position for the group. However, the global economy remained uncertain throughout the third quarter, and this combined with the price increases for raw materials negatively impacted the group’s operating results. Compared to the second quarter of 2017, the implemented price increases were offset by the higher raw material prices leading to a decrease in the EBITDA and EBIT margins in the third quarter to 12.8 percent (second quarter 2017: 14.1 percent and to 8.3 percent (second quarter 2017: 9.9 percent). Looking ahead in terms of sales, Songwon predicts a strong start to the final quarter of 2017, but also expects to see demand drop due to the customers’ traditional end-of-the-year stock adjustments. The group plans to implement further price increases in the fourth quarter of 2017 for contracts which have not yet been renegotiated, and expects this to lead to an increase in sales in the financial year 2018. With the extension of its plant dedicated to thermoplasticic urethane in Suwon, South Korea, the group increased its TPU production capacity from 7,000 to 12,000 metric tons per year in the third quarter of 2017. With this and other ongoing developments, the company anticipates the demand for its products to grow steadily at a rate which slightly exceeds the global GDP. Although challenges exist, Songwon will continue to adhere to its strategy while exercising financial prudency and remaining attentive of the potential for negative surprises. The group will also seek opportunities to further support long-term growth while ensuring the stability of Songwon’s core business. The organization is confident that this approach will yield attractive returns in 2018 and beyond. The third quarter report can be downloaded at: - * Email

This Weeks Headlines - Past 7 Days

Friday, November 17, 2017
Myanmar rubber exports set to rise
Global carbon black market forecast to grow at a CAGR of 4.8 percent through 2024
Lanxess to purchase Solvay's U.S. based phosphorus unit
Continental to invest more than $9 million in its textile reinforcement business in Georgia
Book of the Day - Resistance and Stability of Polymers

Thursday, November 16, 2017
Trinseo starts up new production line at Zhangjiagang, China plant
Registration for the 19th Annual AMAP Conference & Workshop is now open

Wednesday, November 15, 2017
Call for abstracts issued, registration open for the International Conference on Plastics and Rubber Technology Spring 2018
Global silicone defoamers market forecast to reach $16.8 billion by 2025
Dow Chemical announces Evolv3D platform for high-performance 3D printing materials
FDA warns about illegal use of injectable silicone for body contouring and associated health risks
Thai farmers demand all board members of Thai Rubber Authority be dismissed

Tuesday, November 14, 2017
Falken chosen as OEM for the VW Polo
ChemSpec announces exclusive distribution agreement with M&B GreenUS
USW seeks Labor Secretary’s help in dispute with Korean tire company
Fluoroelastomers market forecast to reach $1.64 billion by 2022
Malaysia's natural rubber production fell 12.6 percent in September

Monday, November 13, 2017
Rubber farmers to protest in Bangkok over falling rubber prices
Global rubber machinery market forecast to reach $5.6 billion by 2021
Bridgestone’s foamed rubber technology behind Blizzak studless tire success
TechnoBiz holds Tire Technology training program in Bangkok in December
Songwon Industrial Group releases third quarter results

Todays Headlines

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