On January 28, POSCO reported its 2020 business performance on a consolidated basis in its regulatory filing. POSCO’s 2020 sales totalled 57.792 trillion KRW. The company’s 2020 operating profit was at 2.403 trillion KRW with a net profit of 1.788 trillion KRW. POSCO’s consolidated operating profit had hit 167.7 billion KRW in 2Q and has been showing consecutive increases since: 666.7 billion KRW in 3Q and 863.4 billion KRW in 4Q.
POSCO announced that in the previous year, the steelmaker had suffered an unprecedented management crisis due to a decline in the steel demand industry triggered by COVID-19 and a delay in reflecting increased raw material prices to product prices. However, despite the situation, POSCO’s profitability rebounded from 3Q as the company took action for pre-emptive emergency management, focusing on cash flow and extreme cost-cutting efforts. POSCO Group also maintained operating profit close to the record of the previous year with achievements of POSCO E&C in the construction & plant business and POSCO Energy’s direct import of LNG and expansion of the terminal-related business.
On a standalone basis, sales amounted to 26.509 trillion KRW, while operating profit and net profit recorded 1.135 trillion KRW and 965.9 billion KRW, respectively.
POSCO also announced its mid-term management strategy and its plan to achieve total sales of 102 trillion KRW in 2023, including 46 trillion KRW in the steel sector, 51 trillion KRW in global infrastructure, and 5 trillion KRW in new growth businesses.