South Korean steel giant POSCO Holdings has posted 4.5% drop in operating profit to KRW 2.1 trillion (USD 1.6 billion) in the April-June 2022 after raw materials costs rose more sharply than prices of its steel products. Its sales in the April-June quarter on a consolidated basis stood at KRW 23 trillion (USD 17.5 billion), up 25.7% YoY and net income was KRW 1.8 trillion, flat YoY. The operating profit of was driven by an increase in steel prices and robust business in the green infrastructure and future materials sectors. POSCO said “We were able to report profit, a feat highlighted by strong performance of all of our subsidiaries despite rising inflation and precarious global economic and financial conditions.”Its trading subsidiary, POSCO International, registered a higher profit in the areas of steel, gas fields and food materials. Its construction unit won orders for city planning, urbanization and maintenance projects. Its chemical subsidiary logged a higher profit in the cathode materials business.Korean analysts said “The third quarter earnings outlook of POSCO Holdings will not be as rosy as the second quarter, as indicated by falling prices of steel products over the past few weeks. This is compounded by a moderate increase in supply and concerns over an economic recession fanning an industry wide slowdown. Leading the bleak outlook is decreased demand due to prolonged COVID-19 lockdowns in Shanghai and seasonal weather factors including floods. Also at play is an increasing number of Chinese steelmakers resuming factory operations after the Beijing Winter Olympics ended.”
South Korean steel giant POSCO Holdings has posted 4.5% drop in operating profit to KRW 2.1 trillion (USD 1.6 billion) in the April-June 2022 after raw materials costs rose more sharply than prices of its steel products. Its sales in the April-June quarter on a consolidated basis stood at KRW 23 trillion (USD 17.5 billion), up 25.7% YoY and net income was KRW 1.8 trillion, flat YoY. The operating profit of was driven by an increase in steel prices and robust business in the green infrastructure and future materials sectors. POSCO said “We were able to report profit, a feat highlighted by strong performance of all of our subsidiaries despite rising inflation and precarious global economic and financial conditions.”Its trading subsidiary, POSCO International, registered a higher profit in the areas of steel, gas fields and food materials. Its construction unit won orders for city planning, urbanization and maintenance projects. Its chemical subsidiary logged a higher profit in the cathode materials business.Korean analysts said “The third quarter earnings outlook of POSCO Holdings will not be as rosy as the second quarter, as indicated by falling prices of steel products over the past few weeks. This is compounded by a moderate increase in supply and concerns over an economic recession fanning an industry wide slowdown. Leading the bleak outlook is decreased demand due to prolonged COVID-19 lockdowns in Shanghai and seasonal weather factors including floods. Also at play is an increasing number of Chinese steelmakers resuming factory operations after the Beijing Winter Olympics ended.”
