Hyundai Steel Company (004020) Q2 2024 earnings summary

Executive summary

• Operating profit increased quarter-over-quarter despite a sluggish steel sector, supported by cost-saving measures and improved subsidiary performance.

• Net profit remained low, with only marginal improvement from the previous quarter.

• Non-consolidated results showed limited sales recovery due to a weak construction market and increased low-cost imports.

Financial highlights

• Consolidated revenue rose to KRW 6,041bn in 2Q 2024, up KRW 93bn sequentially but down KRW 1,097bn year-over-year.

• Operating profit increased to KRW 98bn from KRW 56bn in 1Q 2024, but was down from KRW 465bn in 2Q 2023.

• Net profit was KRW 1bn, nearly flat from KRW 32bn in 1Q 2024 and sharply lower than KRW 293bn in 2Q 2023.

• Non-consolidated revenue was KRW 4,852bn, up KRW 32bn sequentially but down KRW 1,011bn year-over-year.

• Non-consolidated operating profit fell to KRW 46bn from KRW 89bn in 1Q 2024 and KRW 426bn in 2Q 2023.

Outlook and guidance

• Steel market expected to remain slow, with lower commodity and product prices due to increased competition from Chinese imports and weak construction demand.

• Coking coal and iron ore prices are projected to stay low amid increased supply and subdued demand.

• Company aims to expand global sales, invest in new production bases, and grow sales of carbon emission reduced steel.