Hyundai Steel, 1Q Operating Profit 303.9 Billion KRW... Returns to Profitability

Photo by Hyundai Steel

[Asia Economy Reporter Choi Dae-yeol] Hyundai Steel announced on the 27th that its consolidated operating profit for the first quarter of this year turned positive to 303.9 billion KRW compared to the same period last year.

Sales increased by 5.6% during the same period to 4.9274 trillion KRW, with an operating profit margin of 6.2%. The company explained, "As the global steel market improved, product prices mainly for sheet products rose, and sales of high value-added products increased," adding, "This is the result of actively responding to the increased steel demand centered on advanced countries and domestic markets as the global economy entered a recovery phase."

According to the industry, domestic distribution prices for hot-rolled and thick plates are formed in the low 1 million KRW range. This was influenced by the improved conditions in major demand industries such as shipbuilding and automobiles, as well as China's steel production cut policy. Hyundai Steel recently established an integrated order management organization and stated that it will strengthen its sales capabilities by enhancing competitiveness in bidding for social overhead capital (SOC) related projects. The company added that it is showing results in projects such as the Incheon Airport expansion and the Dongbuk Line light rail.

The company also clearly stated its intention to increase sales of high value-added products for the shipbuilding and automobile industries. It plans to increase steel grade development according to demand changes and enhance product competitiveness through technical cooperation with customers. Hyundai Steel raised its global automotive steel sheet sales target from 690,000 tons last year to 820,000 tons this year. In line with the trend of electric vehicle transition, it also plans to invest in expanding lightweight materials. The hot stamping line at its Czech subsidiary, currently at about 3.2 million sheets, is expected to increase to about 4.8 million sheets by March 2023.

Since the beginning of this month, the company has been working on internal capability efficiency by introducing a business unit system. It changed the organizational structure from a function-based system to one centered on business units such as blast furnaces and electric furnaces, simplifying the decision-making process. In addition, it developed 1.5GPa-class ultra-high-strength cold-rolled steel sheets for electric vehicle body parts and 9% nickel steel that can withstand ultra-low temperatures of minus 196 degrees Celsius.

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