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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] SeAH Steel Holdings reported a sharp decline in first-quarter earnings, as falling prices in the North American market and global supply chain disruptions weighed on profitability.
According to a regulatory filing on May 15, the company posted consolidated operating profit of KRW 26.7 billion, down 59.0% year-on-year.
Revenue rose slightly by 4.7% to KRW 991.9 billion, but net profit dropped sharply by 86.2% to KRW 8.2 billion, highlighting significant margin pressure.
The earnings decline was primarily driven by lower prices for high-margin oil country tubular goods (OCTG) in North America. In addition, escalating geopolitical risks in the Middle East increased logistics costs and delayed raw material procurement, further eroding profitability.
Its key subsidiary, SeAH Steel, also reported weaker performance, with standalone operating profit of KRW 23.2 billion, down 11.1% from a year earlier.
Despite the weak first quarter, the company expects a rebound in earnings starting in the second quarter, citing improving market conditions.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
