Hyundai Steel reports net loss in third quarter
Hyundai Steel reported a net loss in the third quarter on falling revenue, through it is predicting a return to profit in the final quarter.
The second-largest steelmaker in Korea on Wednesday reported in a regulatory filing that its revenue in the July-September period stood at 4.46 trillion won ($3.96 billion), down 11.6 percent on year. It reported a net loss of 44.7 billion won, down 32 percent on year. Its operating profit inched down 2.1 percent on year to 33.4 billion won.
Revenue was up 8.5 percent on quarter, and its operating profit was up 139 percent quarter-on-quarter. Net loss expanded by 245.5 percent.
Hyundai Steel “managed to achieve 33.4 billion won in operating profit on the sales of high-value products, recovery of overseas factories and intensive cost-cutting,” Hyundai Steel said in a statement Wednesday.
“In the fourth quarter, the company will realize a profit through the normalized sales of automotive steel and increased retail prices. Earnings will be gradually realized through the recovery of the profitability of the steel bar and beam business and the optimized production and sales management.”
The company said it will achieve quality growth centered on raising profit by investing in the sale of high-value products, like automotive steel and earthquake-resistant steel for construction, while improving the production facilities.
Hyundai Steel projects it will be better able to meet the demand from the construction industry by completely upgrading old facilities at its factory in Incheon, which manufactures steel bars and beams. It spent 100 billion won for the upgrade.
With the goal to transform into a futuristic mobility solution provider in line with Hyundai Motor’s focus on hydrogen vehicles, Hyundai Steel recently introduced its goal to annually produce 37,200 tons of hydrogen from the current 3,500 tons. It didn’t specify the date it will achieve that level.
Hydrogen that can be used in hydrogen electric vehicles can be produced by Hyundai Steel using the byproduct gas generated in the coke manufacturing process. The company’s steel plant in Dangjin, South Chungcheong, produces 99.99 percent high-purity hydrogen.
Rival Posco, Korea’s largest steelmaker, on Friday reported 14.26 trillion won in consolidated revenue in the third quarter, down 10.8 percent on year, and 514 billion won in net profit, up 3.5 percent on year, on recovery of steel sales to the pre-Covid-19 levels and a drop in coal prices.
BY JIN MIN-JI [email@example.com]