SeAH Besteel, Sales of 3.6 Trillion KRW and Operating Profit of 238.9 Billion KRW... Returns to Profitability
[Asia Economy Reporter Donghoon Jeong] SeAH Besteel announced on the 10th that it achieved a turnaround to profit with consolidated sales of 3.6511 trillion KRW (up 44.0% YoY) and operating profit of 238.9 billion KRW last year.
SeAH Besteel, the flagship special steel subsidiary of SeAH Group, recorded its highest operating profit in 10 years since 2011, driven by the rapid recovery in demand for special steel.
SeAH Changwon Special Steel, a consolidated subsidiary, posted an operating profit of 100.9 billion KRW on a separate basis last year, an increase of 265.5% compared to the previous year. Sales rose 31.3% YoY to 1.451 trillion KRW. Net profit reached 69.4 billion KRW, up 320.6%.
The special steel industry showed strong performance as key end-use industries that had been sluggish due to COVID-19 in 2020 (automotive, construction heavy equipment, industrial machinery, etc.) turned to recovery last year. Supported by this, SeAH Besteel’s special steel product sales volume, sales revenue, and operating profit all increased.
SeAH Changwon Special Steel saw increased sales of high value-added core products such as stainless steel wire rods and bars. Profitability improved as the company actively reflected rising raw material costs, including nickel, in sales prices. It recorded the highest annual sales and operating profit since joining SeAH Group in 2015.
Although risks such as the spread of the Omicron variant, concerns over interest rate hikes, and geopolitical issues in Ukraine remain this year, the global logistics crisis and vehicle semiconductor supply shortage are expected to gradually ease, offsetting the impact. If automobile sales recover, demand for special steel is likely to increase further.
Energy costs and raw material prices such as iron scrap and nickel are expected to continue rising. The company plans to defend profitability by actively reflecting cost increases in sales prices and maximizing cost reduction.
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A company official said, "Our new year goal is to build an integrated portfolio and expand business synergy of special metal materials such as special steel (for electric vehicles, wind power components), stainless steel (hydrogen), and aluminum (aerospace and defense) in line with the acceleration of energy transition."
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