SY Reports Operating Profit of 5.2 Billion Won in Q3... "Three Consecutive Quarters of Profit"

[Asia Economy Reporter Hyunseok Yoo] Comprehensive building materials company SY announced on the 15th that its consolidated operating profit for the 3rd quarter turned positive compared to the same period last year, recording 5.2 billion KRW. The operating profit margin reached 4.5%. Sales amounted to 116.14 billion KRW.

An SY official explained, "The main reason for the improved performance was the restructuring of loss-making business units and the shift to a profit-centered management system."

SY Build, which was a loss-making division, turned into a profitable unit due to the steel market boom, and at the same time, overseas business units in Nepal, Vietnam, and Cambodia stabilized, contributing to SY's improved performance.

The company representative said, "The profit and loss in the 2nd quarter were the result of rising steel prices and favorable market conditions," adding, "The 3rd quarter profit and loss were achieved not only due to the continued favorable steel market but also as a result of efforts in product development, leading to increased sales of fire-resistant refractory panels, which are strong against fire."

SY's color steel sheet production capacity reaches up to 400,000 tons annually. Some of this is used to manufacture sandwich panels. Instead of outsourcing steel sheets, SY applied its self-produced color steel sheets to its panel products, which helped improve the cost ratio.

On the other hand, the cost of sandwich panels continues to rise in the market. In response, SY is focusing on management efficiency to improve profits beyond product sales by operating its enterprise resource planning (ERP) system with a profit-centered approach.

An SY official stated, "Following operating profits of 2.5 billion KRW in the 1st quarter and 7.8 billion KRW in the 2nd quarter, we achieved 5.2 billion KRW in operating profit in the 3rd quarter as well," adding, "SY is truly creating a perfect turnaround year."

He continued, "Although uncertainties such as the spread of COVID-19 and raw material supply instability from China still prevail, if the current upward trend continues, the 4th quarter performance is also expected to be positive."

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