Daehan Electric Wire Q2 'Turnaround'...Improved First Half Performance

First Half Sales of 1.0986 Trillion KRW, Operating Profit of 15.1 Billion KRW

Unit: Million KRW

[Asia Economy Reporter Park Sun-mi] Daehan Cable has succeeded in turning a profit in the second quarter of this year, announcing significantly improved first-half results compared to last year.

On the 29th, Daehan Cable stated that its separate financial statements for the second quarter of this year showed sales of 584.8 billion KRW, a 41% increase from 414.2 billion KRW in the same period last year. Operating profit turned positive at 9.9 billion KRW, compared to a loss of 1.4 billion KRW the previous year. However, net loss for the period was recorded at 10.7 billion KRW.

Accordingly, first-half sales were preliminarily tallied at 1.0986 trillion KRW, with operating profit at 15.1 billion KRW. Compared to the same period last year, sales increased by 36% and operating profit surged by 4,469%. Net loss also decreased by more than 57%, from 16.4 billion KRW last year to 7 billion KRW this year.

The main factors behind the improved performance are analyzed to be the promotion of sales from already secured order backlogs and the expansion of new orders. Daehan Cable has established regional headquarters overseas to expand its global market and has continuously focused its capabilities on securing high-profit products. As a result, the order backlog at the beginning of this year reached a record high of 38,000 M/T (metric tons) based on volume, and as of the end of the first half, it exceeds 40,000 M/T (metric tons).

In particular, operating profit in the second quarter showed a solid upward trend, nearly doubling that of the first quarter. The extraordinary non-recurring expenses related to the change of the largest shareholder last year were eliminated this year, resulting in a significant increase compared to the previous year.

The operating loss outside of core business in the second quarter was temporarily reflected in the accounting books due to a sudden drop in copper prices at the end of June, causing losses on copper futures valuation. Copper futures trading is a financial transaction to hedge against the risk of losses caused by the highly volatile copper prices, and the cable industry uses futures trading to hedge risks related to copper.

A Daehan Cable official stated, "The loss on copper futures reflected this time will be recognized as sales profit and cost of sales when the physical copper is actually used in the future, so it is expected not to affect the company's overall profit and loss."

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