Hyundai Steel Q1 net tumbles 62 pct on lower output, weak demand

(ATTN: UPDATES share price in 4th para; ADDS more details in last five paras)
SEOUL, April 29 (Yonhap) -- Hyundai Steel Co., South Korea's second-biggest
steelmaker, said Wednesday that its first-quarter earnings dropped 62 percent on
reduced production and lower prices amid weakened demand.

Its net profit reached 51.5 billion won (US$38 million) in the January-March
period, compared with 137.1 billion won a year earlier, the company said in a
regulatory filing.
Sales fell 13.2 percent to 1.85 trillion won over the cited period, and operating
income sank 57 percent to 95.9 billion won.
Shares of Hyundai Steel were trading at 50,900 won on the Seoul bourse as of 1:20
p.m., up 0.59 percent.
Its domestic rival POSCO also reported earlier this month that its profit fell 68
percent as the global recession reduced demand from automakers, builders and
electronics companies.
Hyundai Steel reduced output by around 25 percent to 2.1 million tonnes in the
first quarter from a year earlier.
Its business performance, however, is expected to have improved in the second
quarter largely due to a series of government policies aimed at boosting the
construction sector.
South Korea unveiled an 18-trillion won extra budget in March in addition to the
51-trillion won stimulus already allocated to revive economic growth.
The company said its sales shot up 18 percent in the second quarter from the
first quarter on the back of solid demand from state infrastructure projects.
It projected prices for steel plate, used in cars, appliances and ships, to fall
as raw material prices are forecast to decline down the road.
sam@yna.co.kr
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