Q2 2025 Earnings Announcement
Dongkuk Steel's Operating Profit Reaches KRW 29.9 Billion... Sixfold Increase from Previous Quarter
Dongkuk CM Posts KRW 15 Billion Loss... Impacted by Anti-Dumping Measures and Weak Demand
While the steel affiliates of Dongkuk Steel Group continued to face sluggish market conditions in the second quarter, Dongkuk Steel succeeded in rebounding compared to the previous quarter, whereas Dongkuk CM turned to a loss, continuing to face performance pressure.
On July 25, Dongkuk Steel Group announced the preliminary results for the second quarter of 2025 for its two steel subsidiaries. On a standalone basis, Dongkuk Steel recorded sales of KRW 893.7 billion, operating profit of KRW 29.9 billion, and net profit of KRW 9.2 billion. Compared to the previous quarter, operating profit increased by 603.1% and net profit by 274.6%. However, compared to the same period last year, operating profit decreased by 26.1%.
Employees of Dongkuk Steel Pohang Coil Processing (CS) Plant are taking a commemorative photo in front of the new signboard. Dongkuk Steel
It is analyzed that production adjustments and an increased proportion of high value-added products contributed to improved profitability. The company has sought to defend its earnings through the launch of new products such as 'DK Green Bar,' an eco-friendly rebar based on recycled steel scrap, and 'D-Mega Beam,' a high-strength H-beam for large structures, as well as by establishing a dedicated export organization.
During the same period, Dongkuk CM posted sales of KRW 501.8 billion, an operating loss of KRW 15 billion, and a net loss of KRW 27.6 billion, turning from a profit in the previous quarter to a loss. For the first half of the year, cumulative sales reached KRW 1.0284 trillion, operating profit was KRW 100 million, and net loss was KRW 17.9 billion. Operating profit decreased by 99.9% compared to the first half of last year (KRW 52.9 billion).
The company explained that several independent factors affected its performance: cost burdens arising from anti-dumping petitions on hot-rolled steel sheets; sluggish demand in downstream sectors such as construction and home appliances; declining exchange rates; and export country tariff policies.
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