South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the third quarter this year.
Accordingly, Hyundai Steel has posted a net profit of KRW 276 billion ($193.25 million) for the third quarter this year, compared to a net profit of KRW 567 billion in the second quarter and KRW 567 billion in the third quarter last year. The decrease in net profit was due to higher energy costs.
Meanwhile, in the third quarter this year, the company’s sales revenues decreased by 7.9 percent quarter on quarter amid deteriorating steel market conditions, and rose by 17.0 percent year on year to KRW 6.03 trillion ($4.22 billion), while its operating profit totaled KRW 343 billion ($240.08 million), compared to an operating profit of KRW 803 billion in the second quarter and an operating profit of KRW 781 billion in the third quarter of the previous year.
The company attributed the downbeat performance in the third quarter to a fall in prices of key products and increased costs.
In the third quarter this year, the company’s finished steel production amounted to 4.41 million mt, decreasing by 4.5 percent year on year, due to typhoon-related damage, while its steel sales volume totaled 4.53 million mt, down by 6.9 percent year on year.
According to the company, steel demand is expected to remain weak due to the economic slowdown, monetary policy tightening, and the slump in the construction and real estate sectors. The company expects automobile production to increase due to the easing of supply disruptions.