Hyundai Steel disclosed on the 24th that it swung to a profit, posting 15.7 billion won in operating profit on a consolidation basis in the first quarter of this year, compared with an operating loss of 19.0 billion won in the same period last year.
Sales for the same period came to 5.7397 trillion won, up 3.2%, and net income was a loss of 39.3 billion won, narrowing from a loss of 54.4 billion won a year earlier.
Compared with the previous quarter, the fourth quarter of last year, sales increased 4.6%, but operating profit fell 63.7% and net income turned to a loss.
Hyundai Steel said, "Sales increased from the previous quarter due to higher product sales volume, but operating profit decreased due to a rise in the exchange rate and raw material prices."
Hyundai Steel, however, projected that operating profit will rebound from the second quarter on the back of product price hikes and other factors, and said it will make improving profitability the top priority this year.
To improve results, Hyundai Steel plans to target the domestic and overseas power infrastructure industry and the steel market for data centers to secure new demand, focusing its capabilities there.
It is also responding to growing demand for energy storage systems (ESS) stemming from the expansion of renewable energy adoption and power grid stabilization, and is moving to expand sales based on core steel technologies, including supplying initial volumes of low-temperature impact structural shapes to the North American market.
In addition, it will proceed with steel grade certifications to expand global sales of carbon-reducing steel sheets, which are in mass production through the full-scale operation of the electric arc furnace–blast furnace hybrid process.
A Hyundai Steel official said, "We will preempt new demand in the power infrastructure industry going forward, actively respond to demand for carbon-reducing steel through the electric arc furnace–blast furnace hybrid process, and achieve improvements in profitability."