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Hyundai Steel Q2 net halves on falling prices, weak demand

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(Globalpost/GlobalPost)

SEOUL, July 26 (Yonhap) -- Hyundai Steel Co., South Korea's No. 2 steelmaker, said Friday that its second-quarter profit dropped 51 percent from a year earlier due mainly to falling steel prices and weak demand amid the global economic downturn.

Net profit reached 90.5 billion won (US$81.5 million) in the January-March period, compared with a profit of 183 billion won a year earlier, the company said in a regulatory filing.

Sales also sank 14.5 percent on-year to reach 3.29 trillion won in the second quarter, and operating income declined 44.2 percent to 182 billion won over the cited period.

The steelmaker attributed the sharp drop in the net profit to weak demand for steel products and a decline in prices.

During the second half of the year, Hyundai Steel expects to log 6.8 trillion won in sales, up 15.5 percent from six months earlier, on the back of rising demand from shipbuilders and construction firms.

Shares of Hyundai Steel closed at 70,300 won on the Seoul bourse, down 1.54 percent from the previous session's close. The second-quarter earnings were released after the market closed.

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