South Korea. The Korean industrial group Songwon announced its financial results for the first quarter of 2019, revealing a slow start in the first months of the year, due to the "slowdown of the global economy" that has been occurring since the end of 2018, although maintaining a similar level of sales as during the same period of 2018.
Q1 2019 revenue was USD 159.5 million (190.4 million South Korean won), compared to USD 159.6 million (KRW 190.4 million) recorded in Q1 2018, where a slight decrease in revenue is observed, which, as indicated by the company, is due to a reduction in end consumer demand, "particularly in the automotive industry, as well as in the construction industry."
The U.S.- China trade war, coupled with higher material costs since late 2018 and continuing into the first quarter of 2019, also contributed to the decline in Songwon's gross profit.
However, the company maintains that the second and third quarters are "historically strong and generally produce higher demand," so they anticipate a gradual increase in overall demand for their products.
The Q1 Report can be downloaded here.
