Highest Profits Ever
Hyosung Corp., a leading South Korean synthetic fiber manufacturer, announced on Feb. 2 that it posted 11.93 trillion won (US$10.43 billion) in sales and 1.02 trillion won (US$888.76 million) in operating profits last year. Its operating profit rate also reached a record high at 8.5 percent.
Hyosung, the world's No. 1 player in the global spandex and tire cord markets, said that such achievements were largely due to the fact that all of its business divisions, including textiles, industrial materials, heavy industry and chemicals as well as spandex and tire code, put up a good show evenly. The portion of its operating profits is considered stable – textile with 30.7 percent, industrial materials with 21.5 percent, heavy industry with 18.6 percent and chemicals with 14.5 percent.
The company posted the highest operating profits in history last year as it increased sales of tire code and automotive mats, expanded profitability of polypropylene (PP) and N3, improved performance in the heavy industry sector and maximized the management efficiency in the construction sector.
Hyosung Chairman Cho Hyeon-jun’s global market strategy to expand global markets based on its production networks in major global markets, such as Vietnam, China and the U.S., and focus on develop differentiated technologies and sell quality products proved effective.
In particular, the heavy industry business division dramatically boosted its operating profits after turning a profit by selectively winning highly lucrative projects and developing new markets, including North Africa, Middle East and India, starting from 2014.
In addition, Hyosung has made efforts to improve its financial structure. Its consolidated debt ratio reached a record low at 267.2 percent after IFRS was adopted in 2011. The debt rate of Hyosung Corporation also dropped 36.4 percent compared to the end of the previous year.