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The 2Q Consolidated Operating Profit of POSCO Amounts to KRW 979.1 Billion··· Up 44.3% YoY

Date
Jul. 25, 2017
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  • - Consolidated revenue amounts to KRW 14.944 trillion and the operating profit increased by 44.3% YoY
    - Separate revenue amounts to KRW 7.1343 trillion, and the operating profit amounts to KRW 585 billion··· The debt ratio is 16.3%, its lowest ever
    - This year's consolidated revenue forecast is revised from the beginning of the year by KRW 4.5 trillion to KRW 59.3 trillion

    POSCO's Q2 recorded consolidated revenue of KRW 14.944 trillion, operating profit of KRW 979.1 billion and net profit of KRW 530.1 billion.

     

    POSCO announced these figures in a conference call arranged as an IR session for 2Q 2017 on July 20, and said that its performance slightly declined due to deterioration of earnings in the steel, construction and energy sectors, but its consolidated revenue and operating profit rose by 16.2% and 44.3% YoY, respectively.

     

    As POSCO's Pohang blast furnace #3 was improved for expansion and the hot-rolled and thick plate plants were improved in the second quarter, its crude steel production and sales decreased, and due to the sale of high-priced inventory, which was produced in the first quarter when raw materials were the most expensive, the consolidated revenue and operating profit decreased by 0.9% and 28.3%, respectively, compared to the first quarter.

     

    Its separate revenue increased by 18.7% YoY to KRW 7.1343 trillion, and its operating profit decreased by 17.9% YoY to KRW 585 billion due to increased costs of raw materials.

     

    The operating profit of the E&C division, which recorded an operating loss last year, and the trading and energy divisions, which showed sluggish performance, also dropped from the first quarter, but continued to be in the black.

     

    Its consolidated debt ratio was 69.6%, the lowest since 2010, and its separate debt ratio was 16.3%, the lowest ever. In contrast, the share of sales of World Premium products, the high-value-added products, went up by 10.7%p YoY to 56%, the highest ever. It is looked upon as killing two birds with one stone, i.e. reinforcing financial soundness and increasing profitability.  

     

    POSCO forecasts that the strong demands for steel products will continue due to the restructuring of the Chinese steel industry and economic recovery in advanced countries, and it is planning to make continued efforts to generate revenue, e.g. securing financial soundness, reducing costs and increasing the sales of WP products.

     

    Accordingly, POSCO increased its consolidated and separate revenue by KRW 4.5 trillion and KRW 2.8 trillion, respectively, compared to the targets set at the beginning of the year, to KRW 59.3 trillion and KRW 28.4 trillion.



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