Dongkuk Steel Posts Q3 Operating Profit of 29.9 Billion Won... Dongkuk CM Swings to 6 Billion Won Loss

Dongkuk Steel Operating Profit Rises 22% Year Over Year on Demand from Large-Scale Projects
Dongkuk CM Posts 6 Billion Won Operating Loss Amid Exchange-Rate Fluctuations and Higher Raw Material Costs

Dongkuk Steel said on October 30 that it recorded standalone revenue of 932.3 billion won and operating profit of 29.9 billion won in the third quarter of this year. Revenue rose 21.2% and operating profit increased 22.0% from the same period a year earlier.

Dongkuk Steel Group CI. Dongkuk Steel Group

However, compared with the previous quarter, revenue fell 6.4% and operating profit declined 34.4%. Net profit was 6.2 billion won, down 38.0% from the same period a year earlier.

Dongkuk Steel explained that seasonal factors weakened profitability compared with the previous quarter, but it improved its results year over year by expanding production and sales of long products to meet demand from large-scale projects, including semiconductor plants and artificial intelligence (AI) data centers.

In its long products segment, Dongkuk Steel obtained new Czech CCZ certification at its Incheon plant and developed export specifications for H-beams at its Pohang plant to expand exports.

In its heavy plate segment, the company focused on developing specialty steel products, including titanium-based clad steel (Ti Clad), and improving productivity. It plans to continue pursuing a profitability-focused sales strategy in the fourth quarter.

Dongkuk CM recorded standalone revenue of 579.9 billion won and an operating loss of 6 billion won in the third quarter. Revenue rose 19.5% from the same period a year earlier and 6.4% from the previous quarter, while operating profit shifted to a loss quarter over quarter. Its net loss totaled 36.7 billion won.

With exports accounting for about 70% of its business, Dongkuk CM was affected by exchange-rate fluctuations in the third quarter. In addition, the spread of protectionism in various countries, rising raw material costs, and the influx of low-priced Chinese imports all contributed to weaker profitability.

Dongkuk CM plans to improve profitability in the fourth quarter by adjusting its export share to some extent and increasing the proportion of sales from its high-value-added color-coated steel products.

This content was produced with the assistance of AI translation services.