POSCO Holdings has put itself on an emergency management footing and announced that it will strengthen its group wide risk management, in a move to better respond to tightening demand, cost overruns and supply chain disruptions. POSCO top brass have reiterated the need for increased preparedness against the sharp depreciation of the Korean won, surging borrowing costs and accelerating inflation. POSCO Holdings said the group’s top executives reviewed risk factors for each major businesses unit, such as steel, infrastructure, energy and second battery materials. The group assessed that the global economy is facing a complex crisis, and predicted weakening of profits due to sluggish demand, rising raw material and energy costs and supply chain instabilities. The executives decided to seek efforts to strengthen profitability by overhauling its overall procurement, production and sales operations, and reassess group-wide investment plans.POSCO Holdings' Chairman Mr Choi Jeong-woo said “Weakening demand, surging costs and supply chain complications can and will be preemptively managed with our group-wide efforts. Key executives at all group subsidiaries should be prepared against a possible cash crunch. We will place greater weight on cash-oriented management strategies. The risk factors that require closer monitoring include reduced global steel demand and subsequently increased inventory costs. Also among them are the rising costs of raw input materials, energy and borrowing, as well as uncertainties in the raw material and energy supply chains. The group will seek to fortify its profit models and lower raw input costs through streamlining purchases, production and sales.”Risks to the group's overseas entities will be reviewed more thoroughly, and the group's overall financial soundness will be enhanced via the revision of its investment plans.POSCO Holdings' sales in the April-June period on a consolidated basis stood at KRW 23 trillion (USD 17.5 billion), up 26% YoY while operating profit came in at KRW 2.1 trillion, down 4% and net income was KRW 1.8 trillion, the same as seen in last year's second quarter. The sales growth was driven by an increase in steel prices and the strong performance of its subsidiaries.
POSCO Holdings has put itself on an emergency management footing and announced that it will strengthen its group wide risk management, in a move to better respond to tightening demand, cost overruns and supply chain disruptions. POSCO top brass have reiterated the need for increased preparedness against the sharp depreciation of the Korean won, surging borrowing costs and accelerating inflation. POSCO Holdings said the group’s top executives reviewed risk factors for each major businesses unit, such as steel, infrastructure, energy and second battery materials. The group assessed that the global economy is facing a complex crisis, and predicted weakening of profits due to sluggish demand, rising raw material and energy costs and supply chain instabilities. The executives decided to seek efforts to strengthen profitability by overhauling its overall procurement, production and sales operations, and reassess group-wide investment plans.POSCO Holdings' Chairman Mr Choi Jeong-woo said “Weakening demand, surging costs and supply chain complications can and will be preemptively managed with our group-wide efforts. Key executives at all group subsidiaries should be prepared against a possible cash crunch. We will place greater weight on cash-oriented management strategies. The risk factors that require closer monitoring include reduced global steel demand and subsequently increased inventory costs. Also among them are the rising costs of raw input materials, energy and borrowing, as well as uncertainties in the raw material and energy supply chains. The group will seek to fortify its profit models and lower raw input costs through streamlining purchases, production and sales.”Risks to the group's overseas entities will be reviewed more thoroughly, and the group's overall financial soundness will be enhanced via the revision of its investment plans.POSCO Holdings' sales in the April-June period on a consolidated basis stood at KRW 23 trillion (USD 17.5 billion), up 26% YoY while operating profit came in at KRW 2.1 trillion, down 4% and net income was KRW 1.8 trillion, the same as seen in last year's second quarter. The sales growth was driven by an increase in steel prices and the strong performance of its subsidiaries.
