SEOUL, - Hyundai Steel Co., South Korea's second-largest steelmaker, announced a significant drop in its third-quarter earnings on Wednesday, citing a downturn in global steel demand.
According to a news release by Yonhap News Agency, Hyundai Steel's consolidated net profit for the July-September period amounted to 129.2 billion won (US$95.9 million), marking a 51 percent decline from the same period last year. Sales decreased 10.2 percent on-year to 6.28 trillion won, while operating profit also fell sharply by 38.8 percent to 228.4 billion won.
The company's earnings were below market expectations. A survey by Yonhap Infomax, the financial data arm of Yonhap News Agency, had estimated an average net profit of 133 billion won for the quarter.
Hyundai Steel attributed the disappointing performance to decreased sales volume and declining global steel prices, which were driven by weak demand. In response, the company said it is exploring new demand avenues and focusing on product development.
Additionally, Hyundai Steel is actively pursuing new orders and projects, including those related to domestic semiconductor factory developments and wind energy initiatives in Europe and East Asia.
To further strengthen its market position, Hyundai Steel announced plans to establish a subsidiary named Hyundai Steel Pipe, aimed at enhancing the company's expertise and competitiveness in the steel pipe sector.