- Company attains largest operating profit, sales due to robust sales in all sectors, including heavy industry, chemical and textile
Hyosung reported a record quarterly operating profit of 119.6 billion on 1.7502 trillion won in sales at “the business performance briefing for the second quarter of 2008” at the head office on July 29. Sales are up 27.6 percent on year, and operating profit is up a whopping 68.2 percent year on year. The Company has topped 3 trillion won in biannual sales for the first time ever.
In Power & Industrial Systems PG, Hyosung attained 48.4 billion won in operating profit on 353.8 billion won in sales thanks to growing orders for ultra high voltage transformers and circuit breakers, and development of global markets. These figures are up 143.2 percent and 56.3 percent year on year, respectively. The Power & Industrial Systems PG completed an ultra high voltage transformer plant in Nantong, China in May, and is stepping up marketing and sales campaigns in the Chinese power utility market. The PG also has completed phase 2 expansion of its domestic plant to meet soaring orders from home and abroad. The chemicals PG attained 25.5 billion won in operating profit on 279 billion won in sales thanks to an increase in sales of high value-added specialty products (poly propylene), and the stellar performance of the aseptic business, or a germ-free PET bottle filling system.
The industrial materialsG is boosting efficiency through systematic cooperation between global production bases around the world, including China, the United States and Vietnam. Notably, profitability of the BU has improved thanks to a hike in exchange rates. In the textile PG, Creora, a spandex brand, has secured premium prices by consolidating its status as a premium brand. The PG is establishing new production plants in countries where demand is soaring, including Turkey and Vietnam, as it steps up efforts to secure market shares before its rivals.
Hyosung is expected to see improving sales and profitability thanks to a hike in exchange rates in this year’s second half as well as in the Power & Industrial Systems and industrial materials operations, where it is accelerating it’s advance into foreign markets. The Company plans to reflect soaring costs of raw materials in its sales prices amid expectations for a steady rise in material costs. The textile PG also plans to improve profitability by differentiating its spandex operation from it’s rivals’.
