Posco Holdings profit falls 27% as steel, battery materials falter
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Update time : 2024-02-01 16:00:29
Revenues came in at 77.1 trillion won, down 9 percent, in line with market expectations.
Net profit plunged 48.2 percent to 1.8 trillion won, far afield of the 2.6 trillion won analyst estimate.
Consolidated earnings include those of the firm's subsidiaries, a list that includes Posco, Posco Future M and Posco International.
The disappointing reports followed unstable steel prices and the “falling prices of raw materials like lithium amid slowing growth of EV market,” said Jeong Ki-seop, head of the business strategy team of Posco Holdings, during a conference call Wednesday afternoon.
The company's steel making businesses reported 2.6 trillion won in operating profit, down 21 percent on year, while sales fell 10.1 percent to 63.5 trillion won.
Posco Future M, Posco Holdings' EV battery materials subsidiary, logged 36 billion won in operating profit last year, down 78 percent on year, though its sales increased 44 percent to 4.7 trillion won.
