Hyunda Steel defies the odds to turn a profit in Q2
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Update time : 2020-07-28 18:49:03
Bucking analyst projections, Hyunda Steel reported 14 billion won ($11.67 million) in operating profit in the second quarter, despite decreased sales.
Korea's second-largest steelmaker announced Tuesday that it reported 4.11 trillion won in consolidated sales in the second quarter, down 26.2 percent on-year. It reported a 14 billion won operating profit, down 94 percent on-year, but up from 29.7 billion won in operating losses in the first quarter.
It swung to 12.9 billion won in net loss from 51.1 billion won in net profit in the same period last year, but the net loss shrunk by 88.8 percent from the first quarter.
The performance bucked analyst reports that had projected the steelmaker would report around 20 billion won in operating loss.
“Sales generated from shaft furnaces slowed down due to the stagnation in demand from automobile and shipbuilding industries as a result of Covid-19,” said Hyunda Steel in a conference call held Tuesday to announce its preliminary earnings. But the company turned a profit in the second quarter “on the improved performance of electric furnaces.”
Having a diverse portfolio, including steel bars and beams used for construction, helped Hyunda Steel drive up its operating profit.
