Dongkuk Steel Mill, the country’s third-largest steelmaker, saw a turnaround in operating profits in the second quarter.

The steelmaker said it posted 53.9 billion won ($45.5 million) in operating profits, up 9 percent from the same period last year. Net profit was 156.8 billion won in the April-June period, while it posted 1.49 trillion won in sales.

“Sales of colored plates, cold-rolled steel products and steel rods were stable in the second quarter,” a Dongkuk spokesman told reporters. “The sale of our headquarters building Ferrum Tower in downtown Seoul in the first quarter also contributed to the rebound of profit.”

The company said it expects to see profits continue to grow in the third quarter when its latest business reshuffle begins to take effect. The company recently centralized its thick plate businesses in Dangjin plant in South Chungcheong Province to scale down the organization for operating cost reduction.

The steelmaker has been going through some tough transitions within the company and the industry as a whole, hit by price-competitive Chinese products and the slowdown of the shipbuilding industry.

Suffering from oversupply, the company rolled out a set of bold restructuring plans to cut costs in the thick plate businesses, such as suspending the operation of its second thick plate plant in Pohang, North Gyeongsang Province, from August 1.

The company now only runs the first plant in Dangjin to produce thick plate products.

The recent arrest of Dongkuk chairman Chang Sae-joo over allegations of irregular practices also dealt a huge blow to the company morale and stock prices earlier this year.

Chang later stepped down from the post over suspicions of embezzling about 20 billion won from the company and of habitual illegal gambling.

The company is now run under the leadership of Chang’s younger brother and vice chairman Jang Seh-wook.

By Suk Gee-hyun (monicasuk@heraldcorp.com)