Higher-priced products help Hyundai Steel restore profits
The South Korean steelmaker said it recorded higher operating profit in the third quarter than in the second, despite lower sales.
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Hyundai Steel recorded operating profit of 87.1 billion won in the third quarter. The improvement was due, according to the company, to higher selling prices and a larger share of steel for the automotive industry.
Operating profit rose by 51 per cent compared with the second quarter, according to Hyundai Steel. However, the company’s figures showed that profit was 6.5 per cent lower than in the same period last year, while revenue came to 5.9 trillion won.
Sales fell by 3.4 per cent quarter on quarter. The company cited seasonal effects and public holidays as factors that depressed sales. At the same time, it said, the share of higher-value-added steel products increased, particularly steel for cars.
Net profit came to 84 billion won. That was much higher than a year earlier, but the comparison is affected by the low net profit in the third quarter of last year.
Hyundai Steel expects profitability to improve further in the fourth quarter. The company cites higher product prices and potentially more stable raw-material costs as support. That expectation is the company’s forecast, not an independent prediction.
The results show how steelmakers are trying to protect margins while construction markets and industrial demand remain volatile. Hyundai Steel is also building a plant in Louisiana for automotive steel. For European customers, the key factors are how prices, Chinese exports and demand for cars develop.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The quarterly figures mentioned can be checked in reporting by Yonhap and The Korea Herald. Company expectations are clearly attributed as expectations.
- confirmed Hyundai Steel recorded operating profit of 87.1 billion won in the third quarter. — Reported by The Korea Herald. source
- confirmed Operating profit rose by 51 per cent compared with the second quarter. — According to Hyundai Steel’s quarterly figures. source
- confirmed Higher prices and more steel for cars contributed to the improvement. — Attributed to Hyundai Steel. source
Editor's note
The quarterly figures and the statement about the product mix and prices come from Hyundai Steel and Yonhap. The expectation for the fourth quarter is presented as a company forecast.Sources
- Hyundai Steel posts W87.1b operating profit in Q3 — The Korea Herald
- Hyundai Steel Q3 earnings — Yonhap News Agency
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