Huvis (CEO Shin, You Dong, 079980), specializing in chemical materials, announced through its quarterly earnings release on May 15 that its sales amounted to KRW314.3 billion, its operating profit KRW600 million, and its net income KRW900 million in the first quarter of 2017(consolidated).
Its sales increased by 6% QoQ (4Q of 2016), but its operating profit decreased by 72%, and its pretax income and net income turned around.
Compared to 1Q of 2016, its sales increased by 9%, but its operating profit decreased by 90%, and its pretax income and net income declined by 73% and 74% respectively.
A Huvis official said, “As the prices of raw materials began to sharply increase after the end of last year, we increased the prices of our products, including the staple fiber and filament yarn earlier this year, but the rising cost of raw materials was reflected in the short term to a larger extent, and our business performance in the first quarter of 2017 greatly worsened compared to the previous quarter. At the end of last year, however, the exchange rate sharply increased due to the Trump effect, and non-operating expenses, such as loss on foreign currency valuation loss temporarily increased, but the exchange rate stabilized earlier this year. So the pretax income and net income returned to profit.”
He also said, “Due to the increased selling prices, our sales are increasing, and the prices of raw materials are stable. So profitability is expected to be recovered.”