Huvis (CEO / Yoo, Bea Keun), a leader and Korea’s largest company specializing in advanced chemical and fiber materials, announced on the 18th through the disclosure of its preliminary earnings that sales are expected to reach KRW 317.2 billion, with operating profit of KRW 16 billion, and current net income of KRW 10.9 billion in Q2 of 2013.
The sales are somewhat decreased compared to last quarter’s KRW 322.7 billion, but the operating profit has shown a significant improvement of 110.1% compared to Q1 when it hit a low point due to the slump of the overall chemical fiber business. The current net income also increased to 131.0%, getting back on track to the normal level.

“The sales in Q2 somewhat decreased due to the reduced output with the overhaul of some production lines, but the profitability is recovering since hitting a low point in January, which is clearly indicated by the improvement in operating profit,” said a Huvis official. “The operating profit in Q3 is expected to exceed that of Q2 without a hitch in the process of achieving the business plan for 2013.”


The Q2 earnings increased mostly due to the improvement of profitability with the expansion of high value-added products such as LMF* and OLM** as well as the improvement of spreads caused by the stabilized raw material prices. Furthermore, the analysis showed that the effectuation of the Korea-Turkey FTA also contributed to the increase in the exports of filament yarn.


“The demand for staple fibers is increasing with the economic recovery of the EU and the Americas, which are the major markets for exports,” said Huvis CEO Bae Keun Yoo. “Moreover, the profitability increase will gather momentum if filament yarn exports hit their stride with the effect of the Korea-Turkey FTA. We will further solidify the profit structure with continuous differentiation strategies and expansion of 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