Hyundai Steel Company (004020) Q3 2024 earnings summary

Executive summary

• Revenue and profitability declined sharply in 3Q 2024 and for the first nine months, driven by lower sales, weak construction demand, and one-off costs.

• Net profit dropped to KRW 1 billion in 3Q and KRW 17 billion for the first nine months, both down significantly year-over-year.

• The company maintained its position as Korea's largest electric arc furnace steelmaker, with a balanced portfolio in long and flat steel products.

• Non-consolidated results also showed a significant decrease in operating and net profit, mainly due to weak long steel sales and continued construction sector slowdown.

• Operating income for the first nine months was KRW 205 billion, down from KRW 798 billion year-over-year.

Financial highlights

• Consolidated revenue fell to KRW 5,624 billion in 3Q, and KRW 17.6 trillion for the first nine months, both down year-over-year.

• Operating profit dropped to KRW 52 billion in 3Q and KRW 205 billion for the first nine months, both down sharply year-over-year.

• Net profit nearly flat at KRW 1 billion in 3Q, and KRW 17 billion for the first nine months, both down significantly year-over-year.

• Non-consolidated revenue was KRW 4,463 billion in 3Q, down both sequentially and year-over-year.

• Cash and equivalents decreased to KRW 1.2 trillion as of September 2024, with a decrease in operating cash flow compared to the previous year.

Outlook and guidance

• Market expects higher steel prices driven by decreasing interest rates and stimulus in China.

• Steel demand is expected to recover gradually as global monetary tightening eases and fiscal stimulus is implemented in major economies.

• The company is advancing its carbon reduction strategy, aiming for net zero by 2050 through process innovation and new electric arc furnace technology.

• Investment plans for 2024 total KRW 2 trillion, focused on facility upgrades, environmental compliance, and product competitiveness.

• Domestic HRC prices are rebounding, while rebar prices remain stagnant due to weak construction demand.