Sales reach 6.11 trillion won, up 2.7% on-year
Company eyes AI infrastructure supply tied to mega-projects
Seven data center deals secured; nuclear power plant samples due in Q3
Hyundai Steel reported second-quarter consolidated sales of 6.11 trillion won ($4.26 billion) and operating profit of 57.7 billion won on Monday, saying it plans to expand steel material sales and improve profitability in line with the growth of the AI industry.
Second-quarter sales rose 2.7 percent year-on-year, while operating profit fell 43.3 percent. Quarter-on-quarter, sales and operating profit climbed 6.4 percent and 267.5 percent, respectively. Net profit for the period came in at 12.1 billion won, swinging to a profit from the previous quarter.
"Earnings improved quarter-on-quarter, driven by higher sales volumes centered on long steel products and price increases for key products," the company said. "Profitability is expected to improve as the construction market gradually recovers from the second half of this year, supported by expanded investment in advanced domestic industries."
On borrowings and debt ratios, the company added that new investment in its US steel mill had caused a temporary increase, but that it would continue efforts to strengthen financial soundness over the medium to long term.
Hyundai Steel said it plans to focus on expanding sales of core materials for the AI and energy industries in the second half of the year to reinforce profitability and secure new growth drivers.
The company intends to actively pursue infrastructure construction demand linked to the recently announced "Three Major Mega-Projects of Korea," targeting expanded supply of steel materials for core AI infrastructure. It also plans to secure additional orders for semiconductor fabrication facility construction, drawing on its full steel product portfolio and track record as a top domestic supplier, in step with plans for early completion and further investment.
Progress in the power infrastructure segment is also becoming visible, the company said. Hyundai Steel established a dedicated team for power infrastructure — including data centers — at the start of the year and has since secured orders for steel materials for seven new data centers. Building on that track record, the company plans to pursue integrated orders for steel materials needed for large-scale data center construction and power infrastructure expansion projects going forward.
In addition, in line with growing demand for next-generation nuclear power plants, Hyundai Steel has completed development and a mass production system for high-specification thick plates for containment vessels, with samples to be supplied to customers in the third quarter.
The company is also working to expand new demand through the domestic development of high-value-added materials. Hyundai Steel said it has successfully localized high-durability powertrain materials to meet rising demand for high-strength, high-durability gears driven by growing hybrid vehicle sales. The material offers strong price competitiveness compared with imported equivalents and is already being applied to some vehicle models, with plans to broaden its use.
The company has also developed high-strength crane rails that match the quality of imported products and plans to expand supply of the product — replacing imports at major ports and steel mills — to contribute to profitability improvement.
"We will preempt new demand by expanding sales of core materials for the AI and energy industries and developing high-value-added new materials," a Hyundai Steel official said. "We will improve profitability on the basis of sustainable competitiveness."
eyre@heraldcorp.com
