Dongkuk Steel Improves Q1 Results Through Export Expansion... Operating Profit Surges 2,886%

Sales Reach KRW 857.2 Billion

Turned to Profit from Previous Quarter

Dongkuk Steel Group announced on April 24 that its first-quarter performance improved, driven by its export expansion strategy.

Under K-IFRS separate financial statements, Dongkuk Steel recorded sales of KRW 857.2 billion, operating profit of KRW 21.4 billion, and net profit of KRW 6.2 billion in the first quarter. Compared to the previous quarter, sales increased by 5.2%, operating profit surged by 2,886.2%, and net profit turned to the black. Year-on-year, sales rose by 18.1%, operating profit by 403.9%, and net profit by 153.3%, respectively.

The company explained that its export expansion strategy led to the improved results. Dongkuk Steel said it strengthened its decision-making system by expanding its dedicated export organization and appointing a responsible executive, as well as integrating sales, trade, and logistics to enhance profitability. The company plans to flexibly adjust the proportion of exports in response to changes in domestic demand.

Dongkuk Steel stated that it will respond to sluggish domestic demand, intensifying protectionism, and a high exchange rate and high cost environment by fostering a cooperation-focused labor-management culture.

During the same period, Dongkuk CM posted sales of KRW 494.4 billion, operating profit of KRW 11.2 billion, and net profit of KRW 10.3 billion. Compared to the previous quarter, sales increased by 7.4%, while operating profit and net profit both turned to the black. Year-on-year, sales decreased by 6.1% and operating profit by 25.9%, but net profit increased by 6.1%.

Dongkuk CM stated that despite a sluggish business environment and protectionist measures, it improved profitability by raising product prices and reducing costs. The company maintained profitability by reducing low-margin items and expanding sales of premium products such as Luxteel and Appsteel.

The company also expected that, following the government's decision to impose a provisional anti-dumping duty of up to 33.67% on Chinese galvanized and color steel sheets, the inflow of low-priced imports would decrease and demand for domestic products would increase.

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