Huvis (CEO / Yoo, Bea Keun), a leader and Korea’s largest company specializing in advanced chemical and fiber materials, announced on the 24th through the disclosure of its preliminary earnings that sales are expected to reach KRW 317.1 billion, operating profit of KRW 8 billion, and current net income of KRW 9.5 billion in Q3 of 2013. The sales showed a slight year-on-year increase from the previous year’s KRW 315.2 billion, but the operating profit declined by 40.9% as did the current net income by 19.8%.
 

Huvis analyzed that it faced difficulties in Q3 due to the continuous slump of the overall chemical fiber business, rise in raw material prices, increase in power cost in the summer, and autonomous reduction of production in preparation for the electric power crisis. However, the current net income achieved similar results with Q2 due to efficient management of working capital.
 

“Considering the positive aspects of the stabilized decline of raw materials price in Q4 and the increasing profitability of high value-added products such as LMF* and OLM**, we are definitely showing room for improvement compared to Q3,” said a Huvis official.
 

“The chemical fiber business is recovering at a slower pace than expected, but we will continue to improve the profit structure based on increases in high value-added products and the differentiation strategy to focus on super fibers.

 

* LMF (Low Melting Fiber): Adhesion fiber melting at a lower temperature than regular polyester

** OLM (Olefin Low Melting): Low melting fiber coated with olefin resin, commonly used for sanitizers with its softness and high hydrophilicity.