Dongkuk Steel and its affiliate Dongkuk CM improved profitability in the second quarter, continuing their recovery trend. This was attributed to seasonal demand and increased needs from AI data centers and the shipbuilding industry.
For the second quarter, Dongkuk Steel reported sales of 995.5 billion won, operating profit of 45.6 billion won, and net profit of 11.6 billion won, marking increases of 16.1%, 112.5%, and 87.6%, respectively, compared to the previous quarter. Year-on-year, sales rose by 11.4%, operating profit by 52.3%, and net profit by 26.8%.
For the first half of the year, cumulative sales reached 1.8527 trillion won, with operating profit and net profit at 67 billion won and 17.9 billion won, respectively. Compared to the same period last year, sales increased by 14.4%, operating profit by 96.1%, and net profit by 53.5%.
In the second quarter, the seasonal peak and rising demand for large industrial infrastructure, including semiconductors and AI data centers, helped improve the profitability of Dongkuk Steel's main product, rebar. The company's global export strategy also contributed positively to increased sales volume. The plate segment saw some improvement in production and sales due to strong demand from the shipbuilding sector.
Dongkuk CM reported second-quarter sales of 545.1 billion won, operating profit of 21.1 billion won, and net profit of 14.6 billion won, reflecting improvements of 10.3%, 89.1%, and 41.1%, respectively, from the previous quarter. Year-on-year, sales increased by 8.6%, and both operating and net profits turned positive.
For the first half of the year, cumulative sales were 1.0395 trillion won, with operating profit at 32.3 billion won and net profit at 25 billion won. Compared to the same period last year, sales rose by 1.1%, while operating profit saw significant growth due to favorable market conditions, and net profit also turned positive.
In April, Dongkuk CM benefited from the imposition of provisional anti-dumping duties on Chinese galvanized and color steel sheets, which reduced the supply of low-cost generic materials, thereby improving domestic market profitability. In a high exchange rate environment, the company maintained a high export ratio of high-value products like Luxsteel and Apsteel, which helped recover its financial performance.
A steel industry insider noted, "While the construction sector remains sluggish, demand from shipbuilding and AI infrastructure is providing support. Companies that have secured competitiveness in high-value products are likely to continue their recovery trend for the foreseeable future."
* This article has been translated by AI.
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