Hyundai Steel Co., South Korea’s second-largest steelmaker, said Friday that it swung to a profit in the third quarter thanks to cost-cutting efforts.

Net profit reached 232.9 billion won ($212.5 million) in the three months ended Sept. 30, compared with a net loss of 136.9 billion won a year ago, Hyundai Steel said in a regulatory filing.

Sales, however, fell 9.06 percent on-year to 3.4 trillion won in the period and operating profit fell 19.4 percent to 230 billion won.

Hyundai Steel said decreased sales stemming from a prolonged global economic slump sent operating profit falling in the third quarter from a year earlier.

The steelmaker saved 171.9 billion won in costs in the July-September period by squeezing its budget and building up a raw material provision system. Hyundai Steel plans to cut its annual costs by 500 billion this year.

The company said it has developed a combined 56 new products so far this year and plans to expand the number to 63 by the end of this year.

Hyundai Steel said the construction of its third furnace, scheduled to start operation in September next year, is now 69.1 percent completed.

Hyundai Mobis’ net income rose 24.7 percent in the third quarter from three months earlier, while operating profit fell 30.6 percent. (Yonhap News)