Seoul:Hyundai Steel Co., South Korea's second-largest steelmaker, reported a significant increase in its third-quarter net profit, which nearly quintupled from the previous year. The rise is attributed to higher selling prices and strong sales of high-value-added products.
According to Yonhap News Agency, Hyundai Steel's net profit for the quarter ending in September surged to 84 billion won (US$62.8 million), compared to 17.8 billion won in the same period last year. The company highlighted that the increased selling prices of major products and a larger share of value-added products, such as automotive steel, were pivotal in achieving this performance.
Despite the rise in net profit, the company's operating profit saw a decline of 6.5 percent, falling to 87.1 billion won in the third quarter from 93.2 billion won a year ago. However, sales showed an upward trend, increasing by 2.8 percent to 5.89 trillion won from 5.73 trillion won.
Looking ahead, Hyundai Steel anticipates that higher product prices and stabilizing raw material costs will continue to enhance profitability in the fourth quarter. The company has launched its H One brand, which features premium hot-rolled and welded H-beam steel products, to cater to the growing demand for steel products in artificial intelligence (AI) data centers and semiconductor facilities.
For the first nine months of the year, Hyundai Steel's net profit rose to 56.8 billion won from 800 million won in the previous year. Operating profit for this period decreased by 8.8 percent to 87.1 billion won, while sales climbed by 2.9 percent to 17.74 trillion won.
In addition to these developments, Hyundai Steel is constructing a steel mill in Louisiana with an annual production capacity of 2.7 million tons, scheduled for completion in 2029. This facility will supply automotive steel to U.S. plants operated by Hyundai Motor Co. and Kia Corp. The company plans to begin construction in the fourth quarter, with commercial production set to start in the first quarter of 2029. The $5.8 billion investment is part of Hyundai Motor Group's broader strategy to expand its presence in the United States.