POSCO Future M Q2 Operating Profit 2.7 Billion Won... 94.8% Decrease

POSCO Future M announced on the 25th that its operating profit for the second quarter recorded 2.7 billion KRW, a 94.8% decrease compared to the same period last year.

Sales amounted to 915.5 billion KRW, down 23.3% year-on-year. The company also recorded a net loss of 11.1 billion KRW. The company explained, "Although sales volume of core products increased and margin rates continued to improve, the recovery in operating profit was limited due to weak raw material prices."

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Sales and operating profit from the battery materials business were 593.3 billion KRW and 1.3 billion KRW, respectively. Sales decreased compared to the first quarter due to the decline in prices of key raw materials such as lithium and nickel. Operating profit continued to be positive despite an anode inventory valuation loss of 18.6 billion KRW caused by high manufacturing costs during the initial operation of the artificial graphite anode plant in Pohang, thanks to increased sales volume and yield improvements of high value-added products such as high-nickel cathodes (N86, N87, NCA).

The basic materials business recorded sales and operating profit of 322.2 billion KRW and 1.4 billion KRW, respectively, as sales of refractories and quicklime decreased due to a reduction in the number of POSCO converter repairs and the refurbishment of the No. 4 blast furnace at Pohang Steelworks.

A POSCO Future M official stated, "Since starting mass production of high value-added high-nickel single-crystal cathodes, profitability has continuously improved due to yield enhancements," adding, "With a variety of competitively priced electric vehicle product lines being launched, cathode sales volume is expected to increase further in the second half of the year."

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