SeAH Besteel Holdings Reports Q3 Operating Profit of 20.3 Billion KRW, Down 69% YoY

Economic Slowdown and Weakness in Demand Industries

[Asia Economy Reporter Choi Seoyoon] SeAH Besteel Holdings announced on the 27th that it recorded consolidated sales of 1.0797 trillion KRW and operating profit of 20.3 billion KRW for the third quarter of this year. Compared to the same period last year, sales increased by 19%, but operating profit decreased by 68.9%.

According to SeAH Besteel Holdings, sales increased due to rising product prices, but operating profit declined as special steel sales volume decreased due to sluggish demand industries amid a global economic slowdown, and energy costs rose.

SeAH Besteel, a subsidiary of SeAH Besteel Holdings, posted an operating profit of 21.2 billion KRW in the third quarter, down 39.8% from the previous year, and SeAH Changwon Special Steel also saw its operating profit fall 51.2% to 15.8 billion KRW during the same period. SeAH Aerospace & Defense Materials recorded an operating profit of 1.75 billion KRW, an 18% increase from last year.

Regarding the outlook for the fourth quarter, SeAH Besteel Holdings stated, "Although it is the traditional peak season, the recovery in performance is expected to be limited due to the economic slowdown," adding, "Concerns over economic slowdown due to persistent inflation will likely slow the recovery of demand industries."

They continued, "We will strategically expand the sales proportion of demand industries with robust market conditions such as shipbuilding, oil, and gas," and added, "Considering the rise in energy costs as a given, we will focus our capabilities on cost reduction and maintaining profitability."

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