KCC CI
South Korean fine chemicals manufacturer KCC Corp. announced on Wednesday that its operating profit for the first quarter plunged 14.8 percent, despite a 1.7 percent rise in revenue.
The company announced that it posted 1.6 trillion won ($1.1 billion) in revenue in the first quarter, up 1.7 percent from the same period a year ago. Its operating profit, however, fell 14.8 percent to 88.1 billion won.
KCC said disruptions in raw material supply beginning in March, following the outbreak of the Iran-U.S. conflict at the end of February, negatively affected earnings.
“Operating profit declined due to rising raw material costs and increased expense burdens caused by greater volatility in global markets,” said a company official.
One of KCC’s core businesses is paint production, which uses petrochemical resins as a key material.
KCC is a comprehensive fine chemical company producing construction materials, paints and coatings, silicone products, and electronic substrate materials.
The silicone division accounted for the largest share of revenue at 47.3 percent as of last year, followed by paints and coatings and construction materials.
Last year, the company recorded revenue of 6.48 trillion won and operating profit of 427.6 billion won.
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