KT&G Looks for Overseas Growth

Source from:  tr.itsmyiq.com Jan 25, 2008 01/28/2008

KT&G Corp's fourth-quarter profit to December 31 fell by 34 per cent from that of a year earlier, according to a report by Bomi Lim for Bloomberg. Net income was Won135.0 billion, down from Won205.1 billion. Operating profit, meanwhile, rose by 8.7 per cent to Won185.8 billion during the quarter and sales gained 4.8 per cent to Won617.2 billion. Domestic revenue in the fourth quarter rose by 6.7 per cent to Won496.6 billion, while overseas sales fell by 8.7 per cent to Won96.1 billion. KT&G is currently looking to sell more cigarettes overseas to offset increasing competition from foreign rivals in South Korea, which has reduced its market share to 70 per cent, from 73 per cent in 2005. Earlier this month, the company said that it had agreed to sell cigarettes worth Won450.7 billion to Alokozay International Ltd for sale in the Middle East and Russia. And in March it is due to open its first overseas factory in Turkey, from where it hopes to tap European and CIS markets. In the year to December 31, meanwhile, KT&G's operating profit rose by 14 per cent to Won814.4 billion and sales increased by 6.6 per cent to Won2.4 trillion. Enditem