POSCO Reports Record High Operating Profit of 9.2 Trillion Won Last Year (Update)

[Asia Economy Reporter Choi Dae-yeol] POSCO announced on the 12th that its operating profit based on consolidated financial statements for last year was tentatively estimated at 9.2 trillion KRW, an increase of 284% compared to the previous year. Sales during the same period rose by 32% to 76.4 trillion KRW.

This is the first time since the company's establishment that POSCO's consolidated operating profit exceeded 9 trillion KRW. It is also the first time sales have surpassed 70 trillion KRW. In 2020, the annual operating profit was around 2.4 trillion KRW, and sales were approximately 57.8 trillion KRW. The operating profit for the fourth quarter of last year is estimated to be around 2.3 trillion KRW. Although it slightly decreased compared to the previous third quarter (around 3.1 trillion KRW) due to raw material costs and other factors, it maintained the 2 trillion KRW level. POSCO's quarterly operating profit has exceeded 2 trillion KRW since the second quarter of last year.

Steel demand increased as front industries such as automobile and shipbuilding showed signs of recovery, and profitability significantly improved as steel product supply prices, which had been frozen for several years, were raised consecutively. According to the industry, POSCO raised the price of shipbuilding steel plates (thick steel plates over 6mm) in both the first and second halves of last year, and also increased the supply price of automotive steel sheets.

China, which accounts for about half of the world's steel production, has been controlling steel production due to reasons such as carbon emission reduction and the Olympics, which also boosted profitability. Domestic steel companies compete with Chinese steel products in the global market. Meanwhile, on a separate basis, operating profit was 6.6 trillion KRW, an increase of 485% compared to the previous year, and sales were 39.9 trillion KRW, up 51% during the same period.

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