POSCO Inter·Chemical, Achieve Record Quarterly Earnings Despite Adversities

POSCO Inter, Sales Approaching 10 Trillion
Chemical Sector Achieves Record High Performance for 7 Consecutive Quarters

[Asia Economy Reporters Oh Hyung-gil and Yoo Hyun-seok] POSCO International and POSCO Chemical both achieved record quarterly results in the first quarter. Their advanced investments in future businesses have paid off.

POSCO International announced on the 25th through a public disclosure that its first-quarter sales increased by 39.8% year-on-year to 9.9123 trillion KRW. Operating profit and net income rose by 70.2% and 75.5% to 216 billion KRW and 163.1 billion KRW, respectively. The operating profit significantly exceeded the previous record of 180 billion KRW in Q2 2019 and the market forecast of 159.3 billion KRW.

This was the result of having a complementary portfolio in steel, energy, and investment sectors, proactively managing risks, and conducting creative sales activities. Despite global supply chain instability, the trading division recorded an operating profit of approximately 112.7 billion KRW, a 70% increase compared to the same period last year. The energy business also saw operating profit rise by 94% year-on-year to 42.9 billion KRW.

Subsidiary POSCO Mobility Solutions, which produces electric vehicle drive motor cores, maintained steady sales, and overseas subsidiaries such as the Uzbek cotton spinning plant also performed well, resulting in the investment corporation’s total operating profit increasing by about 58% year-on-year to 59.1 billion KRW. A POSCO International official stated, "This year, we plan to accelerate performance creation in existing businesses and focus on developing future businesses such as eco-friendly sectors."

[Image source=Yonhap News]

POSCO Chemical achieved its highest quarterly sales for seven consecutive quarters. On a consolidated basis, POSCO Chemical’s first-quarter sales were 664.6 billion KRW, and operating profit was 25.5 billion KRW, up 23.7% and 24.8% respectively from the previous quarter.

The battery materials business led growth with sales of 317.1 billion KRW, a 44.1% increase from the previous quarter. Cathode materials sales rose 48.1% to 272.2 billion KRW, and anode materials sales increased 23.7% to 44.9 billion KRW. The lime chemical business achieved sales of 197.9 billion KRW, up 6.6% from the previous quarter due to rising raw material prices, while the refractory business grew 13.8% to 136.6 billion KRW thanks to increased orders.

POSCO Chemical has raised its 2030 battery material mass production capacity targets in line with the growth of its battery business. Cathode material capacity will increase from 420,000 tons to 610,000 tons, and anode material capacity will rise from 260,000 tons to 320,000 tons.

A POSCO Chemical official said, "We are building a full portfolio covering premium, mass-market, and next-generation cathode and anode materials. We plan to enhance business competitiveness by securing the value chain from raw materials such as lithium, nickel, graphite, and precursors to recycling in collaboration with the POSCO Group."

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