Typhoon Hinnamnor Hits POSCO’s Profit in Jul-Sep’22 Quarter

South Korean steel maker POSCO Holdings operating profit dropped by 71% YoY in July-September 2022 quarter to KWR 900 billion (USD 633 million) as some of its steel-processing facilities remain shuttered after a typhoon. Sales rose 2.9% YoY to KWR 21.2 trillion. In early September, POSCO was forced to halt three blast furnaces at its steel mill and steel processing facilities in Pohang, about 370 kilometers southeast of Seoul, as Typhoon Hinnamnor pounded some of its facilities. The production of cold-rolled steel sheet and stainless steel was hardest hit by the powerful typhoon that killed more than 10 people, and left severe flooding and damage in its wake. The disruption was estimated to have cut POSCO’s steel sales volume by 14% to 7.7 million tonnes from a year earlier. POSCO said “Operating losses stemming from the suspension of production at Pohang Steel Works and rising one-time costs were estimated to have slashed the operating profit by some KWR 440 billion.” The outlook for the company remained murky as the steel mill is expected to return to normal operations in the first quarter of next year at the earliest. A global economic downturn with growing risks of a recession is also unlikely to help steel demand rebound anytime soon

Typhoon Hinnamnor Hits POSCO’s Profit in Jul-Sep’22 Quarter

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