Decline in Upstream Industries... Sales Down 15.5% to 953.1 Billion KRW
SeAH Aerospace & Defense Materials Sees Operating Profit Up 80% Thanks to Aerospace and Defense Demand
"Steel Sales Volume Hit Low in Q4 Last Year... Recovery Expected in Q2"
SeAH Besteel Holdings announced on the 2nd that it recorded sales of 953.1 billion KRW and an operating profit of 21.3 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 15.5% and operating profit decreased by 70.3%.
Regarding the first quarter performance, SeAH Besteel Holdings explained, "The decline in the performance of major subsidiaries SeAH Besteel and SeAH Changwon Special Steel was due to the global economic recession and sluggishness in key steel front industries such as automobiles and construction since the second half of last year." It added, "SeAH Besteel and SeAH Changwon Special Steel showed a recovery in sales volume from the low point in the fourth quarter of last year, achieving a turnaround to net profit compared to the previous quarter."
In the case of SeAH Aerospace & Defense Materials, thanks to increased global demand in aviation and defense, it recorded an operating profit of 3.1 billion KRW, an 80.4% increase compared to the previous year. Sales also rose by 21.5% year-on-year to 25.9 billion KRW.
Regarding the outlook for this year, SeAH Besteel Holdings stated, "Difficult external business conditions will continue due to factors such as rising oil prices and high inflation dampening consumer sentiment, ongoing global geopolitical risks including worsening Middle East tensions, and global low growth including China." However, it added, "Since the fourth quarter of last year, steel sales volume has gradually increased, and favorable business conditions such as the peak season effect are expected to be created in the second quarter."
SeAH Besteel Holdings plans to pursue a profitability-focused sales strategy by improving the sales mix centered on high value-added products, expanding its global sales network, and capturing new market opportunities. It also plans to continue strengthening differentiated research and development (R&D) capabilities to expand the supply of special steel and special metal materials for future demand industries such as nuclear power, aviation, and hydrogen businesses.
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