Dongkuk Steel expects rosier Q4 after mediocre Q3Dongkuk Steel Mill, a manufacturer of thick steel plates, posted a third-quarter net profit plunge of 70 percent on Friday, blaming foreign exchange losses.
Net profit between July and September dropped to 12.5 billion won ($11 million) from 42.3 billion won a year earlier, the company said in a statement.
“The won’s weakness in the third quarter compared to a year earlier resulted in foreign exchange losses and a poor net result,” a company spokesman said.
Dongkuk Steel expects robust earnings results in the fourth quarter, as the shipbuilding industry seem to have passed its worst waters following the 2008 financial crisis and shipbuilders have begun to receive more orders.
Dongkuk Steel is a major supplier of thick steel plates to local shipyards.
Operating profit rose 10 percent to 72.5 billion won in the third quarter from 65.8 billion won last year. Sales were up 23 percent to 1.55 trillion won from 1.27 trillion won during the same period.
An increase in steel product prices and higher demand from builders propped up the quarterly operating profit, the company said.