Dongkuk Steel, 3Q Operating Profit 298.5 Billion KRW... Up 248% YoY

Dongkuk Steel Color Steel Sheet New Line S1CCL Facility

[Asia Economy Reporter Choi Dae-yeol] Dongkuk Steel announced on the 15th that its consolidated operating profit for the third quarter reached 298.5 billion KRW, a 248% increase compared to the same period last year. Sales amounted to 1.907 trillion KRW, up 47% year-on-year, and net profit rose 437% to 198.7 billion KRW.

Accumulated operating profit since the beginning of the year reached 614.9 billion KRW, an increase of 155%. Cumulative sales grew 34% to 5.1208 trillion KRW, and net profit turned positive at 374.2 billion KRW.

The balanced growth in sales and profits was due to raising product selling prices in response to rising raw material costs. In particular, sales of high-priced product lines such as color steel sheets increased, and the new color steel sheet production line (S1CCL) stabilized earlier than expected, boosting profitability. The company explained that strategies such as developing advanced thick plates (ultra-thin materials, LP-plate, etc.) and actively entering new markets with new H-beam products were effective.

Dongkuk Steel’s Brazil CSP steel mill recorded an operating profit of 237.8 billion KRW amid favorable global steel market conditions. This is the highest quarterly performance since its operation began in 2016. With the removal of domestic sales restrictions in Brazil and increased infrastructure investments in slab demand markets such as the US and Europe, the operating environment is expected to remain favorable for some time.

The company expects that its global growth strategy centered on the core product line of color steel sheets will become more concrete in the fourth quarter, allowing steady expansion of its scale. Following Vice Chairman Jang Se-wook’s recent announcement of the mid- to long-term vision, the company is promoting the expansion of the high value-added Lamina color steel sheet market. It has also initiated entry into the second coil center in Mexico and the expansion of the building solutions R&D center in Doseong, Chungnam. From next month, the online platform Steel Shop will handle all products manufactured by the company to broaden sales channels.

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