SONGWON Industrial Group announces Financial Results for Q1/2015

Publishing date: 15.05.2015

  • Sales in Q1 totaled 157,045 Mil. KRW
  • Gross profit amounted to 24,971 Mil. KRW
  • The gross profit margin is at 15.9%

Ulsan, Korea – May 15, 2015
SONGWON Industrial Group ( today announced its financial results for Q1. The Group achieved sales of 157’045 Mil. KRW and a gross profit margin of 15.9% - an increase of 3.4% compared to the Q1/2014.

In Million KRW First quarter
2015 2014 ∆%
Sales 157’045 162’899 -3.6%
Gross profit 24’971 20’327 22.8%
Gross profit margin 15.9% 12.5%
Operating profit 5’103 -1’057 582.8%
Profit / (loss) for the period 3’068 -4’892 162.7%

SONGWON started well into the year 2015, following a difficult 2014 (particularly Q1/2014) and despite challenging market conditions.

Global currency issues combined with sales price pressure resulting from continuously decreasing raw material costs, customers purchasing with shorter lead times and events such as the West Coast shut downs in the U.S. have all contributed to a slight decrease in consolidated sales.

However, SONGWON’s production sites ran steadily without any disruptions during Q1/2015 which led to a significantly improved gross profit margin of 15.9%.

Despite the ongoing uncertainty relating to foreign exchange rates, political instabilities and unpredictable regional economic developments, we expect to see a positive increase in demand in the coming months from customers who previously postponed orders to profit from the decreased raw material prices.