Seoul: Hyundai Steel Co., South Korea's second-largest steelmaker, has reported a significant increase in its second-quarter net profit, attributed to a rise in sales of high-end products. The company's net profit for the quarter ending in June reached 37.4 billion won (US$27.4 million), a substantial rise from 1.4 billion won recorded in the same period last year, as per the company's latest regulatory filing.
According to Bahrain News Agency, the surge in net profit was primarily driven by increased sales of value-added products, particularly automotive steel. A company spokesperson highlighted that over 80 percent of Hyundai Steel's 5 million tonnes of annual automotive steel output is supplied to Hyundai Motor Co. and Kia Corp, which significantly contributed to the improved financial performance.
Hyundai Steel has expressed its ambition to further expand its global automotive steel sales, with a strategic focus on Europe. The company plans to introduce low-carbon products to enhance its market presence and competitiveness. Additionally, Hyundai Steel anticipates better earnings in the latter half of the year, aided by a reduction in cheap Chinese steel imports and supportive domestic economic measures.
Despite the positive net profit growth, the company's sales experienced a slight decline of 1.6 percent, totaling 5.94 trillion won. However, operating profit saw an increase of 3.9 percent, reaching 101.8 billion won, reflecting the company's effective cost management and strategic focus on high-end product segments.