(LEAD) Hyundai Steel Q3 net surges on higher prices, high-end products

(ATTN: RECASTS throughout; ADDS photo)

SEOUL, Oct. 30 (Yonhap) -- Hyundai Steel Co., South Korea's second-largest steelmaker, said Friday its third-quarter net profit nearly quintupled from a year earlier, driven by higher selling prices and robust sales of high-value-added products.

Net profit for the three-month period that ended in September jumped to 84 billion won (US$62.8 million) from 17.8 billion won in the same period last year, the company said in a press release.

"Higher selling prices of major products and an increased share of value-added products, such as automotive steel, supported our quarterly performance," the company said.

Operating profit fell 6.5 percent to 87.1 billion won in the third quarter from 93.2 billion won a year ago. Sales rose 2.8 percent to 5.89 trillion won from 5.73 trillion won.

For the fourth quarter, Hyundai Steel expects higher product prices and stabilizing raw material costs to further improve profitability.

Amid rising demand for steel products used in artificial intelligence (AI) data centers and semiconductor facilities, Hyundai Steel recently launched its H One brand, which features premium hot-rolled and welded H-beam steel products.

For the January-September period, net profit surged to 56.8 billion won from 800 million won a year earlier.

Operating profit fell 8.8 percent to 87.1 billion won in the first nine months from 93.2 billion won a year ago. Sales rose 2.9 percent to 17.74 trillion won from 17.24 trillion won.

Meanwhile, Hyundai Steel is building a steel mill in Louisiana with an annual production capacity of 2.7 million tons. The facility, scheduled for completion in 2029, will supply automotive steel to U.S. plants operated by its affiliates Hyundai Motor Co. and Kia Corp.

The company has said it aims to begin construction in the fourth quarter and start commercial production in the first quarter of 2029.

Hyundai Steel announced the $5.8 billion investment plan in March last year as part of Hyundai Motor Group's broader investment strategy in the United States.

kyongae.choi@yna.co.kr
(END)