Dongkuk Steel, Q3 Operating Profit 85.7 Billion KRW... Up 51.1% YoY

[Asia Economy Reporter Hwang Yoon-joo] Dongkuk Steel announced on the 16th that its consolidated operating profit for the third quarter of this year reached 85.7 billion KRW, a 51.1% increase compared to the same period last year. During the same period, sales decreased by 9.3% to 1.2975 trillion KRW, while net profit turned positive, recording 37 billion KRW.

Cumulative operating profit up to the third quarter achieved 241.6 billion KRW, a 31.2% increase compared to the same period last year. Sales decreased by 11% to 3.8278 trillion KRW, and net loss narrowed to 21.5 billion KRW.

Although sales declined due to the continued spread of COVID-19 and sluggish demand, profitability improved through a production and sales strategy focused on profitability. In particular, sales of long steel products used as construction materials slightly decreased due to the off-season in the construction industry, but profitability improved through manufacturing cost improvements and expansion of producible specifications.

As consumer demand for home appliances recovered, Dongkuk Steel expanded sales of Appsteel, a color steel sheet for home appliances, quickly responding to the resumption of global economic activities. The company also began supplying Luxsteel Bio, an antibacterial color steel sheet, to COVID-19 safe clinics and continued to lead the color steel sheet market by launching new products such as chameleon steel sheets that change color and shape depending on the viewing angle.

Dongkuk Steel plans to continue its super-gap strategy by increasing the annual production capacity of color steel sheets from the current 750,000 tons to 850,000 tons by the second half of 2021, strengthening the competitiveness of its world-class color steel sheet business. Additionally, it plans to sustain sound management by strengthening profitability-focused sales strategies, such as expanding the sales proportion of high value-added products across all business sectors.

Based on separate financial statements, sales in the third quarter of 2020 recorded 1.1194 trillion KRW, a decrease of 11.4% compared to the same period last year, but operating profit increased by 57.8% to 69.3 billion KRW. Net profit turned positive, reaching 47.8 billion KRW compared to the same period last year.

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