Dongguk CM Reports Q3 Operating Profit of 21.5 Billion KRW, Down 31% YoY

Dongkuk CM announced on the 24th through its preliminary Q3 earnings report that it recorded sales of 538.3 billion KRW, operating profit of 21.5 billion KRW, and net profit of 12.3 billion KRW. Compared to the previous quarter, sales decreased by 4.3%, operating profit decreased by 26.0%, and net profit decreased by 46.5%. Compared to the same period last year, sales decreased by 2.9%, operating profit decreased by 31.1%, and net profit dropped by 49.8%.

Dongkuk CM cited a decline in sales volume due to sluggish demand in front-end industries such as construction and home appliances, as well as a drop in exchange rates, as factors contributing to the decline in performance. Although sales volumes of cold-rolled, galvanized, and color steel sheets all decreased, the company was able to secure operating profit by maintaining the export sales ratio of premium color steel sheets such as Luxteel and Appsteel.

As a strategic alternative for sustained growth amid demand stagnation and market slowdown, Dongkuk CM signed a basic agreement to acquire Ajou Steel in Q3. Synergies are expected through ▲cost reduction ▲integrated purchasing ▲export expansion ▲strengthening B2C capabilities. Dongkuk CM plans to complete the business combination within the year and create synergies through business restructuring between the two companies.

Based on its mid- to long-term growth strategy 'DK Color Vision 2030,' Dongkuk CM plans to secure profitability in Q4 through a profit-focused sales strategy according to the market environment of front-end industries.

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