Dongkuk Steel said Friday that it recorded revenue of 932.3 billion won and an operating profit of 29.9 billion won on a standalone basis in the third quarter this year. Revenue increased by 21.2% and operating profit rose by 22% compared to the same period last year.
Compared to the previous quarter, revenue decreased by 6.4%, operating profit fell by 34.4%, and net income dropped by 46.5%. Although profitability slowed due to the impact of the seasonal off-peak period, performance improved compared to the same period last year as the company increased production and sales of bar steel to meet demand from large-scale projects such as semiconductor plants and AI (artificial intelligence) data centers.
The bar steel division focused on expanding exports. The Incheon plant newly obtained Czech CCZ certification in the third quarter, while the Pohang plant developed specifications for H-beams intended for export. In the plate steel division, efforts were concentrated on developing special steel products such as titanium-based clad (Ti Clad) and improving productivity. The company plans to continue its profitability-focused business strategy in the fourth quarter as well.
Dongkuk CM recorded revenue of 579.9 billion won and an operating loss of 6 billion won on a standalone basis in the third quarter. While revenue increased by 6.4% compared to the previous quarter, operating profit and net income turned into losses. Compared to the same period last year, revenue rose by 19.5%, but operating profit and net income continued to be in the red.
Dongkuk CM, which has an export ratio of approximately 70%, was significantly affected by exchange rate fluctuations in the third quarter. The spread of protectionism in various countries, rising raw material prices, and the inflow of low-priced imported goods from China were also cited as factors dragging down profitability.
Dongkuk CM plans to work toward restoring profitability by expanding sales of high-value-added color-coated steel sheets. In the fourth quarter, the company intends to focus on adjusting its export ratio to some extent while increasing the share of high-value product sales.
in INDUSTRY
