Dongkuk Steel Mill(460860) said in a filing on the 24th that it posted second-quarter standalone revenue of 995.5 billion won and operating profit of 45.6 billion won this year.
In the second quarter this year, Dongkuk Steel Mill's revenue and operating profit both increased from the previous quarter. In particular, operating profit jumped 112.5% from 21.4 billion won in the previous quarter and 52.3% from a year earlier. It also beat the securities market consensus (29.5 billion won) by 55%.
Revenue rose 16.1% from 857.1 billion won in the previous quarter and 11.4% from a year earlier.
The improvement was driven by expansion of domestic semiconductor plants and growth in global exports.
Dongkuk Steel Mill said profitability of its core products, bar and shaped steel, improved in step with the expansion of large industrial infrastructure such as domestic semiconductor plants. In the second quarter this year, production and sales of bar and shaped steel were 8.0 billion tons (t) and 7.48 billion t, up 19% and 12% from the previous quarter, respectively.
Dongkuk Steel Mill also said increased demand for shipbuilding steel, such as heavy plate, and higher sales under a strategy to boost global exports including to the United States had a positive impact on results.
Dongkuk CM's second-quarter standalone revenue this year was 545.1 billion won, with operating profit of 21.1 billion won. Revenue and operating profit improved 10.3% and 89.1% from the previous quarter, respectively. From a year earlier, revenue rose 8.6%, and operating profit swung to a profit.
Dongkuk CM said profitability in the domestic market improved as supplies of low-priced commodity products decreased due to the government's imposition in April of anti-dumping (AD) tariffs on Chinese galvanized and color steel sheets.
It also said that in a high-exchange-rate environment, it recovered its bottom line as production and sales increased while maintaining a high export ratio of high value-added products such as Luxteel and Apsteel, Dongkuk CM's main products.