Huvis records KRW 291.5 billion in consolidated sales and KRW 7.9 billion in operating profit in Q2 2015. Profitability worsened due to short-term overheated competition / Profits decreased YoY.
On July 28, chemical materials company Huvis (CEO Baekeun Yoo, 079980) announced its preliminary results and stated that its Q2 2015 sales are expected to be KRW 291.5 billion, with an operating profit of KRW 7.9 billion and net income of KRW 6.4 billion(consolidated).
 
Sales and operating profit declined by 5% and 20% respectively QoQ (Q1 2015), and pre-tax income and net income increased by 25% and 18% respectively.
 
When compared to Q2 2014, sales and operating profit decreased by 16% and 52% respectively. Additionally, pre-tax income and net income dropped by 42% and 54% respectively.
 
“As supplies increased due to new entries in the LMF market, which is our main product, competition overheated in a short period of time, resulting in a decrease in our Q2 performance,” explained an official from Huvis. “As suppliers begin to refrain from cutthroat competition in the market, try to acquire ‘fair prices,’ and the overall enhancement in the quality competitiveness of Huvis products, our profitability will gradually be restored.”
 
Meanwhile, according to Huvis, its first-quarter profits declined, but its debt ratio as of the end of the first quarter was 122%, and its total borrowings and bonds payable to total assets was 22%, down by 12% and 1% respectively from 134% and 23% at the end of 2014. Its overall financial structure has become healthier.