SY, Q2 Operating Profit Up 7.5 Billion KRW YoY... "Effect of Steel Market Improvement"

[Asia Economy Reporter Yoo Hyun-seok] Comprehensive building materials company SY announced on the 12th that its consolidated operating profit for the second quarter of this year increased by 7.5 billion KRW compared to the same period last year. This is the highest quarterly operating profit ever recorded.

SY's operating profit for the second quarter was 7.836 billion KRW, a 2294% increase compared to the same period last year. The operating profit margin rose by 6.84 percentage points from the previous year to reach 7.25%. During the same period, sales increased by 35% to 108.119 billion KRW. SY stated, "The improvement in the global steel market, combined with the enhanced production capacity of our steel color-coated sheets, created a synergistic effect."

Color-coated steel sheets, a type of steel material, are used not only in building materials but also as raw materials for home appliances and automobile steel sheets. Due to COVID-19, the time spent at home increased, leading to a surge in global demand for home appliances. To meet the domestic and international supply shortages of color-coated steel sheets, SY has been operating all production lines at full capacity since the beginning of this year. SY's production capacity for color-coated steel sheets is up to 400,000 tons annually. They also explained that the development of high-quality sandwich panel product lines contributed to this positive effect.

In June, SY became the first in the industry to obtain a non-combustibility certificate for sandwich panels in their finished product state. This achievement came six months ahead of the full enforcement of the revised Building Act, which focuses on enhancing fire safety. By applying self-produced color-coated steel sheets to their panel products instead of outsourcing, the cost ratio was also improved.

An SY official said, "Through securing raw material quantities, maximizing production line operation, and know-how in new product development, we are achieving stable quality in steel production capacity and services," adding, "We are solidifying our position as a leading steel manufacturer."

He continued, "In June, we introduced ceramic-coated color-coated steel sheets with quality guaranteed for up to 40 years and simultaneously exported 10,000 tons of these products worldwide, achieving good results. Not only is the steel manufacturer’s growth accelerating, but visible achievements such as sandwich panel fire safety technology development and obtaining non-combustibility certificates for finished panel products have also been added, so the performance growth trend will accelerate further in the second half of the year," he added.

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