Textile Industry Suffering Losses

An increasing number of the nation''s major textile companies are running losses, with the situation expected to worsen.
Kolon Industries Inc. reported a net loss of 12 billion won ($10.2 million) in the third quarter, a big jump from the 500 million won loss announced in the previous trimester. "Losses in the raw yarn sector widened as raw material prices rose and sales prices dropped. As a result, overall business showings have shown red ink," said a Kolon official.

The company had originally targeted operating profit at 113.3 billion won and ordinary profit at 38 billion won this year, but with 3.98 billion won in operating profit and a 8.9 billion won net loss reported so far this year, the company is unlikely to meet its goals.

Meanwhile, Hyosung Co. experienced an operating loss of 3.7 billion won in textiles unit during the third quarter, but its other businesses prevented the company from falling into red.

Another leading textiles maker Cheil Industries Inc. saw its operating profit decline 35.5 percent in the third quarter from a year ago. The company experienced an operating loss of 10 billion won and 7 billion worth of net loss during July-Sept. period.