SeAH Besteel, 1Q Operating Profit 10.5 Billion KRW...36.5% Decrease YoY

[Asia Economy Reporter Park So-yeon]SeAH Besteel announced on the 6th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 10.5 billion KRW, a 36.45% decrease compared to the same period last year. Sales amounted to 700.1 billion KRW, down 10.33% from the same period last year. Net profit increased by 70.81% to 18.3 billion KRW.

Due to the continuous decline in steel demand from upstream industries (automobiles, construction heavy equipment, etc.) and sluggish exports, sales volume and sales revenue decreased compared to the same period last year. It is positive that since the third quarter of last year, SeAH Besteel's deficit has improved and the operating profit of its major subsidiary, SeAH Changwon Special Steel, has expanded, leading to a gradual improvement in consolidated performance.

A SeAH Besteel official stated, "The impact of COVID-19, which spread worldwide from March to May, is expected to have a full effect in the second quarter," adding, "Accordingly, demand for special steel in major countries such as the United States and Europe, as well as domestically, is expected to decline." Furthermore, the official mentioned, "We will closely monitor changes in demand industries caused by COVID-19 and establish a tight sales-production response system that can immediately respond to changes to fully defend against the decrease in sales volume."

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