Posco Holdings reports better-than-expected sales and profit in Q2

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Posco Holdings reports better-than-expected sales and profit in Q2

Published: 14 Jul. 2022, 17:15 Updated: 14 Jul. 2022, 17:20

Posco Center building in Gangnam District, southern Seoul [NEWS1]

Posco Holdings reported better-than-expected consolidated sales and operating profit in the second quarter, driven by the global increased demand for steel.

The company forecasts an operating profit of 2.1 trillion won ($1.6 billion) in the April-to-June period, down 4.5 percent on year, in a preliminary earnings guidance released Thursday. The figure beat the market consensus of 2 trillion won, as reported by FnGuide.

Sales came in at a record high of 23 trillion won, up 25.7 percent on year. It also beat market expectations.

The consolidated earnings include those of its subsidiaries, a list that includes steelmaker Posco, Posco Chemical, Posco International and Posco Energy.

Neither net profit nor segmentation were provided.

An increase in the average selling price of steel contributed to the good results, according to Park Seong-bong, an analyst at Hana Securities.

But the profit will likely be decreased in the third quarter as Posco plans to lower the prices of its major products including thick plates and hot-rolled coil, Park added.

Posco is scheduled to hold a press conference to explain the company’s results on July 21.

BY SARAH CHEA [[email protected]]