The company reported consolidated revenue of 5.74 trillion won for the January to March period on Friday, up 3.2 percent from a year ago, buoyed by stronger product shipments. Operating profit, however, slid 63.7 percent quarter-on-quarter as exchange rate headwinds and elevated raw material costs weighed heavily on margins.
Hyundai Steel said the surge in debt and its leverage ratio reflected capital injections into its U.S. steelworks and other growth-oriented expenditures, describing the increase as temporary.
The company projected a gradual recovery in profitability from the second quarter onward, citing an expected easing in cheap import inflows and planned price increases for key products.
"We will pre-empt new demand in the power infrastructure industry and actively respond to carbon-reduced steel demand through our combined electric arc and blast furnace process to achieve a recovery in profitability," said a Hyundai Steel Spokesperson.
Shares of Hyundai steel traded at 42,100 won per stock on 3:00 p.m., 2.06 percent higher than a day ago.
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