POSCO, the highest performance since its inception… Exceeded 9 trillion won in operating profit last year

Last year, POSCO achieved record-high earnings thanks to the booming steel market.

On a consolidated basis, POSCO announced on the 12th that its operating profit last year was 9.2 trillion won, up 283.8% from the previous year. Sales were 76.4 trillion won, up 32.1% from the previous year.

It is the first time since its establishment in 1968 that POSCO’s annual operating profit exceeded 9 trillion won. This is 2 trillion won higher than the previous annual record of 7.2 trillion won in 2008. It is the first time that annual sales reached 70 trillion won. The previous peak was 68.9 trillion won (2011).

The record-breaking performance despite the COVID-19 crisis was largely due to the recovery of the automobile, shipbuilding and construction industries, which boosted steel demand. As China, which produces half of the world’s steel, has cut steel production due to its carbon-neutral policy, supply has been unable to keep up with demand. In particular, the sales unit price of major products such as steel plates for automobiles and heavy plates for shipbuilding increased, resulting in increased profitability.

In fact, last year, POSCO’s steel business recorded 39.9 trillion won in sales, up 50.6% from the previous year. Operating profit jumped 484.6 percent to 6.6 trillion won. At POSCO, the steel business accounts for about 60% of total sales. It is known that the performance of the ‘global infrastructure sector’, which includes construction and energy, and the ‘new growth sector’, which includes chemicals, has grown evenly.

POSCO’s strong performance is expected to continue this year as well. The World Steel Association predicts that steel demand will increase by 2.2% this year compared to last year. In a recent report, the Steel Association said, “The increase in steel demand is expected to slow this year due to the reduction of the base effect, but as the recovery continues, demand is expected to be equal to or higher than that of 2019. However, it is still at a high level compared to the previous year.”

Reference-www.khan.co.kr

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