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Dongkuk Steel Q3 net plunges 70 pct on FX losses

2017/11/10 16:20

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SEOUL, Nov. 10 (Yonhap) -- Dongkuk Still Mill Co., a thick steel plate maker, said Friday its third-quarter net profit plunged 70 percent on foreign exchange losses.

Net profit for the three months that ended Sept. 30 dropped to 12.53 billion won (US$11 million) from 42.30 billion won a year earlier, the company said in a statement.

"The won's weakness in the third quarter compared to a year earlier resulted in foreign exchange losses and a poor net result," a company spokesman said.

The company expects robust earnings results in the fourth quarter, as the shipbuilding industry has passed the worst, following the 2008 financial crisis and shipbuilders have begun to receive more orders. Dongkuk Steel is a major supplier of thick steel plates to local shipyards.

Operating profit rose 10 percent to 72.54 billion won in the July-September period from 65.83 billion won a year ago. Sales were up 23 percent to 1.55 trillion won from 1.27 trillion won during the same period, it said.

An increase in steel product prices and higher demand from builders propped up the quarterly operating profit, the statement said.

kyongae.choi@yna.co.kr

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