POSCO Reports Record High 3Q Operating Profit of 3.1 Trillion Won (Update)

POSCO Pohang Steelworks Operation Scene

[Asia Economy Reporter Choi Dae-yeol] POSCO announced on the 25th that its consolidated operating profit for the third quarter reached 3.117 trillion KRW, a 366% increase compared to the same period last year. Sales rose 45% to 20.637 trillion KRW during the same period. Both sales and operating profit are at record-high levels. The consolidated net profit was 2.628 trillion KRW.

On a separate basis, operating profit was 2.296 trillion KRW, up 785% from the same period last year. Sales amounted to 11.315 trillion KRW, and net profit was 1.84 trillion KRW. Similarly, these figures represent the highest sales and earnings since the company's establishment.

By business segment, steel production and product sales both increased as favorable market conditions continued. Crude steel production was 9.703 million tons, with an operating rate of 94.6%, up 255,000 tons and 1.4 percentage points from the previous quarter. Crude steel production increased after repairs were completed in the second quarter, and product output rose due to increased demand for cold-rolled and coated steel. Sales volume was 9.022 million tons, about 23,000 tons higher than the previous quarter.

Although raw material costs such as coal and one-time expenses like labor costs increased, profitability improved significantly due to rising selling prices. Compared to the second quarter, profits from price increases alone exceeded 1.8 trillion KRW. The selling price of carbon steel rose from 901,000 KRW per ton to 1,097,000 KRW per ton.

POSCO's Indonesian subsidiary Krakatau POSCO also posted its highest quarterly performance, while among subsidiaries, POSCO Energy achieved strong results due to increased electricity rates. POSCO International, POSCO Engineering & Construction, and POSCO Chemical saw slight decreases in operating profit compared to the previous second quarter.

The full-year sales forecast (consolidated) was raised to 74.2 trillion KRW, more than double digits higher than the previous second quarter’s guidance of 66.4 trillion KRW. The separate basis forecast was raised by 2.7 trillion KRW to 39.7 trillion KRW. However, the annual investment budget was reduced by about 800 billion KRW to 5.6 trillion KRW.

This content was produced with the assistance of AI translation services.