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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] POSCO Holdings Reports 43% Drop in Operating Profit Due to Weak Core Business
POSCO Holdings announced on the 25th that it achieved consolidated revenues of KRW 18.51 trillion and operating profit of KRW 7.52 trillion for the second quarter of the year. This represents a 8% decrease in revenue and a 43.3% drop in operating profit compared to the previous year. Net income for the same period also fell by 29.6%, from KRW 7.76 trillion to KRW 5.46 trillion.
In terms of business segments, the core steel segment (POSCO and overseas steel operations) recorded revenues of KRW 15.45 trillion and operating profit of KRW 4.97 trillion. Revenues decreased by 6.6% year-on-year, while operating profit plunged by 51% compared to the previous year’s KRW 10.21 trillion.
The infrastructure segment (POSCO International and POSCO E&C) saw revenues and operating profit decrease by 2.8% and 3.5% respectively, to KRW 14.77 trillion and KRW 4.29 trillion. The battery materials segment also faced performance decline, with revenues amounting to KRW 947 billion and an operating loss of KRW 28 billion, marking a shift to negative profitability.
The decline in the core steel segment was attributed to scheduled repairs and maintenance of blast furnaces, which reduced production and sales. Additionally, delayed economic recovery in China led to an influx of excess production into the domestic market, negatively impacting overall performance.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
