[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyosung Group's holding company Hyosung's operating profit plunged 90% last year. Major affiliates also performed poorly.
Hyosung announced on the 31st that its consolidated operating profit was 64.9 billion won last year, down 89.8% from the previous year. Sales rose 5.2% year-on-year to 3.7193 trillion won. Net profit fell 95.4 percent to 24.8 billion won.
Operating loss in the fourth quarter was 13.8 billion won, compared to the same period last year (operating profit of 145.3 billion won). Sales and net losses in the fourth quarter were 1.155 trillion won and 25.7 billion won, respectively. An official from Hyosung explained, "The profit and loss of the equity method continue to be sluggish due to the sluggish petrochemical industry due to the global economic downturn and slowing demand."
Except for heavy industries, major affiliates of Hyosung Group also saw their operating profit fall, the report showed.
Hyosung Chemical posted an operating loss of 336.7 billion won last year. Sales rose 14.23 percent to 2.8786 trillion won during the same period, but net loss for the term was 408.9 billion won. Sales rose 5.18% to 682.1 billion won in the fourth quarter, but operating losses continued to be 95.7 billion won.
Hyosung T&C also posted an operating loss of 43.2 billion won in the fourth quarter of last year due to delayed recovery in demand for its flagship products such as Spandex. Compared to the fourth quarter of last year, it turned into a deficit.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
