SeAH Besteel Holdings said Thursday that it recorded consolidated revenue of 1.0563 trillion won and an operating profit of 14.4 billion won for the third quarter of this year. Revenue increased by 14.1% compared to the same period last year, while operating profit decreased by 46.4%.
A company official said, "Revenue increased due to higher product sales volume and rising selling prices, but operating profit declined as roll margins narrowed amid intensified competition with low-priced imported materials and increased cost burdens."
SeAH Aerospace & Defense Materials saw revenue and operating profit decrease by 3.6% and 31.8%, respectively, compared to the same period last year, due to shipment delays resulting from adjustments to production schedules at major customers.
SeAH Steel's standalone revenue for the third quarter of this year was recorded at 575.9 billion won, with an operating profit of 2.995 billion won. Revenue rose by 16.0% compared to the same period last year, but operating profit fell by 34.4%.
Despite temporary production disruptions at finished vehicle manufacturers, demand growth in eco-friendly mobility, defense, and heavy equipment sectors drove top-line expansion. Conversely, profitability deteriorated as competition intensified due to the influx of low-priced Chinese imports and rising prices for raw materials such as iron scrap.
SeAH Changwon Special Steel's standalone revenue was 414.9 billion won, with an operating profit of 12.9 billion won. Revenue increased by 17.8% compared to the same period last year, while operating profit decreased by 27.8%.
Although demand recovery in existing downstream industries such as industrial machinery and construction was sluggish, sales of high-value-added stainless steel products for AI semiconductors and the energy and power generation sectors increased. However, profitability worsened due to rising prices of raw materials such as nickel and stainless steel scrap.
SeAH Steel Holdings plans to expand sales of high-value-added products in sectors with robust demand, including eco-friendly vehicles, artificial intelligence (AI) semiconductors, defense, and energy and power generation. The company also expects increased sales of related special steel components, driven by the normalization of automobile production and growing demand for eco-friendly vehicles.
The potential imposition of anti-dumping duties on Chinese rebar is also a variable. With the Trade Commission having recommended the imposition of provisional anti-dumping duties in September, the government is scheduled to decide on the imposition by mid-November. Changes in import volumes from China resulting from the duties are expected to impact the competitive landscape of the domestic special steel market.
The company aims to defend profitability through process efficiency and cost reduction while strengthening cooperation between its U.S. special alloy production subsidiary, SeAH Super Alloy Technologies, and its domestic subsidiaries. It plans to leverage supply chain diversification needs in the global aerospace and defense sectors to develop its high-performance special metal materials business as a new growth engine.
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