South Korea's No. 2 steelmaker Hyundai Steel Co. said Wednesday its first-quarter earnings tumbled more than 55 percent on weaker demand amid an economic slowdown.
Net profit came to 217.8 billion won (US$162.9 million) in the January-March period, down 55.4 percent from a year earlier, the company said in a regulatory filing.
But it was a sharp turnaround from a net loss of 280.2 billion won for the fourth quarter of last year.
Sales fell 8.5 percent to 6.38 trillion won, with its operating profit sinking 52.1 percent to 333.9 billion won.
Hyundai Steel's first-quarter bottom line was above the average forecast of 144.3 billion won in a survey of analysts by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company said its first-quarter performance improved on increased output and sales amid an absence of one-off costs, including strike-related expenses.
Yet Hyundai Steel painted a gloomy outlook for the world steel industry, citing inflation and rising interest rates may slow the global economic recovery.
Earlier in the day, Hyundai Steel said it is targeting to cut its direct and indirect carbon emissions by 12 percent by 2030 as part of efforts to achieve its "net-zero" goal.
"Carbon neutrality is not a choice, but a must," CEO An Dong-il said, unveiling its zero-carbon road map. "Hyundai Steel will focus all its capabilities on securing new growth momentum and being reborn as a sustainable and eco-friendly steelmaker."
The road map comes in line with new regulations on carbon emissions by the European Union, the United States and other economies.
Source: Yonhap News Agency