Despite this situation, the company aims to overcome the crisis and increase profitability. In a conference call held on the 30th, an official from the company stated that the steel market has weakened due to high global interest rates, stagnant domestic demand and delayed recovery from the economic crisis. However, Hyundai Steel plans to overcome the crisis by developing high value-added steel types and making preventive investments.
Hyundai Steel's performance in the first quarter decreased. Compared to the same period last year, sales decreased by 6.9% and operating profit decreased by 83.3%.
However, while sales decreased compared to the previous quarter, operating profit increased. A Hyundai Steel official explained that profitability increased as cost increases were reflected in sales prices and costs decreased.
Hyundai Steel plans to actively respond to new markets to achieve stable profits despite the decline of the steel market, while focusing on developing high value-added steel materials. To this end, it will invest 2 trillion won (USD 1.4 billion) in facilities despite stagnant market conditions.
Kim Gwang-pyeong, head of the company's finance department, said, "We have not clearly calculated the amount of each item, but we plan this year's annual facility investment to be around 2 trillion won."
Hyundai Steel predicts that steel demand will gradually recover and the global economy will show a gradual recovery starting from the second half of this year.
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