Typhoon Damage Hits POSCO Holdings, Q3 Operating Profit Plunges 71% (Comprehensive)

Impact of Pohang Steelworks Production Halt
One-time Cost Increase
Operating Profit Reduced by 440 Billion Won

[Asia Economy Reporter Choi Seoyoon] POSCO Holdings' operating profit for the third quarter fell to one-third of last year's level. The impact of factory shutdowns due to Typhoon Hinnamnor was significant.

POSCO Holdings announced on the 19th that its preliminary results for the third quarter of this year showed sales of 21.12 trillion KRW and an operating profit of 900 billion KRW. While sales were similar to the same period last year, operating profit plummeted by 71%. In particular, operating profit was 39% below the market forecast of 1.4764 trillion KRW.

POSCO Holdings stated, "Operating losses from the suspension of production at the flooded Pohang Steelworks and increased one-time costs affected operating profit by about 440 billion KRW."

POSCO Holdings' third-quarter sales volume is estimated to have recorded 7.7 million tons, a 14% decrease compared to the same period last year due to the suspension at Pohang Steelworks.

Earlier, POSCO Pohang Steelworks suffered flooding damage from Typhoon Hinnamnor, the 11th typhoon of the season, and halted all production processes for the first time in 49 years.

POSCO completed the restoration of the 3rd Electrical Steel Sheet and 2nd Electrical Steel Sheet factories on the 5th and 28th of last month, respectively, and began restarting the 1st Cold Rolling Mill from the 6th. On the 7th, restoration of the 1st Hot Rolling Mill was completed and it resumed operations.

During October, the 3rd Heavy Plate and 1st Wire Rod factories, in November the 2nd Heavy Plate and 3rd and 4th Wire Rod factories, and in December the 2nd Hot Rolling Mill, 2nd Cold Rolling Mill, 2nd Wire Rod, and Stainless Steel 2nd Cold Rolling Mill are scheduled to be restored step-by-step.

Meanwhile, POSCO Holdings will hold its third-quarter earnings conference call on the 24th.

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