Sales Decrease by 15.4% to 6.0414 Trillion Won
Hyundai Steel announced on the 25th that it recorded consolidated sales of 6.0414 trillion KRW and an operating profit of 98 billion KRW in the second quarter of this year. Compared to the previous year, sales decreased by 15.4%, and operating profit fell by 78.9%. Both sales and operating profit fell short of market expectations.
Regarding the second quarter operating profit, Hyundai Steel explained, "Despite the continued slowdown in the steel market conditions, operating profit increased by 42.2 billion KRW compared to the previous quarter due to a decline in raw material prices and improved performance of subsidiaries."
Hyundai Steel is promoting the expansion of sales in the global market and new investments in the Indian market to improve profitability. Based on its technological competitiveness in automotive materials, such as carbon-reducing automotive steel sheets and new steel grades for electric vehicles, it plans to increase the global sales ratio of automotive steel sheets to 21%.
Additionally, to ensure stable supply of automotive materials to the HMI (Hyundai Motor India) Pune plant scheduled to start operations next year and to expand sales to local global OEMs and home appliance parts companies in India, Hyundai Steel is pushing forward with the construction of a new SSC (Steel Service Center) in Pune, India, aiming for commercial production in the third quarter of next year.
It is also creating new demand through the development of seismic- and fire-resistant H-beams and new steel structures to respond to the modular construction market.
Along with this, Hyundai Steel plans to expand its market share by developing high-performance new products for automotive use, such as mass-producing the domestically first hot-rolled ultra-high-strength 1GPa-class new steel grade that enhances electric vehicle lightweighting and collision safety, and applying it to electric vehicle rear trailing arms.
A Hyundai Steel official stated, "Although difficult management conditions continue due to the slowdown in the construction market and the influx of low-priced imports, we plan to improve profitability through the creation of new demand and expansion of sales of high value-added products."
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