SINGAPORE Hyundai Steel
Co. Ltd. saw its net profit plunge in the first quarter amid
weak steel prices and lost production resulting from the
shutdown of its hot-rolled coil facilities for maintenance, the
second-largest steel producer posted net income of 20 billion
won ($18 million) for the three months ended March 31, down
90.8 percent sequentially from 217 billion won and 87.3 percent
lower than the 158 billion won recorded in the year-ago
quarter. Revenue for the quarter came in at 2.78 trillion won
($2.5 billion), down 16 percent quarter on quarter from 3.31
billion won and a drop of 21.7 percent year on year from 3.55
The decline was largely within
expectations, New York-based ratings agency Moodys
Investors Service Inc. said April 29.
The companys combined
production volume for long and flat steel products in the
January-to-March period totaled 3.37 million tonnes, down 15
percent from 9.96 million tonnes in the fourth quarter and was
14.4 percent below the year-earlier 3.94 million tonnes.
Combined sales volumes for the two segments totaled 3.43
million tonnes, down 16.1 percent and 13.2 percent in the same
Looking forward, the
Incheon-based steelmaker said it expects global steel demand to
increase in the second half of the year as emerging markets
On the home front, domestic auto
production is expected to increase 1.5 percent this year, while
shipbuilding production is forecast to remain flat from
compared with 2012 levels.
Hyundai Steelalso expects
domestic construction investments this year to increase 1.6
A version of this article was
first published by AMM sister publication Steel First.