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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Steel has regained its KRW 7 trillion quarterly appearance in a year, the report showed. Operating profit also fell short of the level of the first half of last year, when it was evaluated as a steel supercycle, but continued to rebound for the second consecutive quarter.
According to a public announcement on the 26th, Hyundai Steel tentatively estimated sales of 7.1383 trillion won, operating profit of 465.1 billion won and net profit of 293.5 billion won in the second quarter. Compared to the same period last year, sales, operating profit and net profit fell 3.3%, 43.4% and 48.2%, respectively.
However, compared to the previous quarter, sales increased 11.7%, operating profit increased 39.3%, and net profit increased 34.8%. The operating profit ratio was 6.5%, down 4.6%p from the previous year, but up 1.3%p from the previous quarter.
The company's sales surpassed 7 trillion won for the first time in a year, the second-largest figure after 7.381 trillion won in the second quarter of last year, which recorded the highest quarterly sales ever. Profits also rebounded in the first half of last year, breaking away from the sluggish trend of posting a deficit of 200 billion won in the fourth quarter due to strikes and typhoon damage.
On a separate basis, production in the second quarter was 4.939 million tons, less than 4.998 million tons a year earlier, but sales rose 3.7 percent from the previous quarter to 4.897 million tons, exceeding 4.868 million tons in the previous year and 4.704 million tons in the previous quarter. As a result, sales rose 4.6% QoQ to KRW 5.8632 trillion and operating profit rose 24.4% to KRW 426.4 billion, respectively.
Despite the slowing construction industry, the company expects demand industries such as automobiles and shipbuilding to remain solid in the second half of the year and continue its profitability-oriented management strategy.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
