Huvis (CEO / Yoo, Bea Keun), the leading cutting-edge chemical & fiber materials company, officially announced on the 19th that it was expected to achieve a firm performance with a total sales of 660.4 billion Won and an operating profit of 34.3 billion Won in the first half of 2012, in spite of a deteriorated market environment of the chemical fiber industry that has resulted from a global economic depression.

 

The total sales achieved by Huvis in the first half were reduced by 7.1% and the operating profit by 6.7% over the same period in the previous year. The net profit in the first half is expected to amount to 25.2 billion Won. The total sales in the second quarter of 2012 are tentatively estimated at 323.7 billion Won, and the operating profit at 16.8 billion Won, which show decreases by 3.9% and 3.2% respectively from the previous quarter.

 

Huvis’ ratio of operating profit to sales stood at 5.2% for the first half of 2012, which is higher than 4.9% recorded in the year 2011. Huvis has consistently achieved total sales amounting to 320 to 340 billion Won and an average operating profit of 17 billion Won for every quarter since 2011.

 

Huvis management announced, “Since April, a decrease in the cost of raw materials combined with a collapse in the international oil price have caused a significant loss in the overall performance of the chemical fiber industry.” He explained, “In spite of those circumstances, Huvis could make stable profits as a result of having consistently executed a differentiated strategy for coping with an economic recession.

 

Huvis has achieved a differentiation rate of higher than 70% with regard to staple fiber, including low melting fiber especially which is a global leading product with an international market share of higher than 40%. This company also has the highest share in the differentiated market for filament fiber targeted on the market for high performance outdoor clothing.

 

Huvis CEO Bae Keun Yoo stated, “There are still uncertainties such as the economic crisis in the Eurozone in the second half of this year. However, we expect to see a recovery in the domestic chemical fiber industry, considering reduction in international oil price fluctuations and acceleration of a reduction in interest rates in China.” He added, “Huvis is going to make every effort to ensure stable profits through the existing business structure and improve profitability by promoting high value products such as Meta Aramid.“