Dongkuk Steel Group, a steel manufacturing company, announced its preliminary results for the third quarter of 2026.
On October 30, Dongkuk Steel reported a standalone revenue of 932.3 billion won, an operating profit of 29.9 billion won, and a net profit of 6.2 billion won for the third quarter. Compared to the same period last year, revenue increased by 21.2% and operating profit rose by 22.0%, while net profit saw a decline of 38.0%.
To respond to demand from large projects such as semiconductor factories and artificial intelligence (AI) data centers, Dongkuk Steel increased its production and sales of rebar, leading to improved operating profit compared to the previous year.
In the rebar sector, the company enhanced its marketing efforts by obtaining new CCZ certification at its Incheon plant for export expansion and developing specifications for H-beam exports at its Pohang plant. The plate division focused on developing and improving productivity for specialty steel products, including titanium clad (Ti Clad). Dongkuk Steel plans to continue its profitability-focused business strategy in the fourth quarter.
Meanwhile, Dongkuk CM reported standalone revenue of 579.9 billion won, an operating loss of 6 billion won, and a net loss of 36.7 billion won for the third quarter. Although revenue increased by 19.5% compared to the same period last year, the company was unable to escape from operating and net losses. The operating loss widened from 5.2 billion won last year to 6 billion won this year, while the net loss increased from 2.3 billion won to 36.7 billion won.
With approximately 70% of its business reliant on exports, Dongkuk CM was affected by currency fluctuations in the third quarter. The spread of protectionism in various countries, rising raw material costs, and the influx of low-priced imports from China also weighed on profitability.
Despite the challenging business environment, Dongkuk CM focused on increasing the production and sales of high-value color-coated steel products to improve profitability. In the fourth quarter, the company plans to adjust its export ratio while expanding the proportion of high-value product sales.
* This article has been translated by AI.
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