The Hyundai Steel Co., suffered a net loss of 12.9 billion won ($10.7 million) in the second quarter owing to the COVID-19 pandemic, compared with a net profit of 51.1 billion won in Q2 last year, , the company said in a statement released on July 28.
"The virus hammered the April-June quarter profits to the bottom due to a sharp decline in demand from carmakers, ship and other industries," said the Yonhap News Agency, citing a spokesman with Hyundai Steel.
The Hyundai Steel earned its 35% revenue from the sales to captive buyers like Hyundai Motor Co. and Kia Motors Corp. The three companies are both subsidiaries of Hyundai Motor Group.
In April to June, the operating profit plummeted a whopping 94% to 14 billion won from 232.6 billion won a year ago. Its sales also fell 26% to 4.1 trillion won from 5.57 trillion won year on year.
Through the first half of 2020, the company recorded a net loss of 128.4 billion won while the year-ago situation was a net profit of 165.1 billion won.
The operating loss in the first half stood at 15.7 billion won and the year-ago period saw an operating profit of 445.1 billion won. Sales also declined 18% to 8.78 trillion won from from 10.64 trillion won a year earlier.
(Writing by Rebecca Liu Editing by Tammy Yang)
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