Hyundai Steel Company (004020) Q3 2024 earnings summary

Executive summary

• Revenue and profitability declined due to lower sales and one-off costs in 3Q 2024 compared to both the previous quarter and the same quarter last year.

• Net profit dropped sharply, with consolidated net profit at KRW 1 billion, down from KRW 129 billion year-over-year.

• 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.

Financial highlights

• Consolidated revenue fell to KRW 5,624 billion, down KRW 417 billion sequentially and KRW 659 billion year-over-year.

• Operating profit dropped to KRW 52 billion, a decrease of KRW 46 billion quarter-over-quarter and KRW 177 billion year-over-year.

• Net profit nearly flat at KRW 1 billion, down KRW 16 billion sequentially and KRW 128 billion year-over-year.

• Non-consolidated revenue was KRW 4,463 billion, down KRW 389 billion quarter-over-quarter and KRW 780 billion year-over-year.

• Non-consolidated operating profit was KRW 32 billion, down KRW 14 billion sequentially and KRW 157 billion year-over-year.

Outlook and guidance

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

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

• Iron ore prices are rising on Chinese stimulus expectations; scrap prices are falling due to production cuts.