Dongkuk Steel 2Q Operating Profit 99.8 Billion KRW... 26% YoY Increase Driven by Color Steel Sheet Superiority

[Asia Economy Reporter Kim Hyewon] Dongkuk Steel announced on the 14th that its operating profit based on consolidated financial statements for the second quarter reached 99.8 billion KRW, a 26.1% increase compared to the same period last year (79.2 billion KRW).

Sales recorded 1.3019 trillion KRW, a 12.9% decrease, while net profit turned positive at 62.2 billion KRW, a 201.8% increase compared to the same period last year (20.6 billion KRW).

For the cumulative first half of this year (January to June), sales amounted to 2.5303 trillion KRW, down 11.8% from the same period last year (2.8698 trillion KRW), and operating profit increased by 22.3% to 156 billion KRW. However, net loss was recorded at 58.6 billion KRW, returning to the red.

Although sales declined due to sluggish steel demand caused by the spread of COVID-19, it is analyzed that profitability was defended through cost reduction efforts and expansion of high value-added product sales.

Dongkuk Steel explained, "We succeeded in defending the profitability of the long steel business by maximizing the advantages of the electric furnace business, which allows flexible operations," adding, "Leading the market with differentiated high-end color steel sheets and seismic-resistant steel products, which are high value-added steel products, was also effective."

They further stated that in the second half of the year, they will continue investing in differentiated high-end color steel sheets and advance the business to include color steel sheet processing and construction services to lead the market. The electric furnace steelmaking business, which produces long steel products, will strengthen management focused on profitability while enhancing sustainability through eco-friendly business strategies.

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