Posco Holdings profit misses estimates as steel, EV batteries slump
Published: 03 Feb. 2025, 17:53
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- SARAH CHEA
- [email protected]
Audio report: written by reporters, read by AI
![Posco's steel mill in Pohang, North Gyeongsang [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/02/03/e740a7d2-56ed-49ef-9acd-b7c2e60c32a9.jpg)
Posco's steel mill in Pohang, North Gyeongsang [YONHAP]
Posco Holdings' profit fell in 2024, missing its earnings projection, impacted by a downcycle in the steelmaking industry and slowing EV battery demand.
Consolidated operating profit at the holding company, which includes the earnings of subsidiaries such as Posco, Posco Future M and Posco International, declined 38.4 percent from a year earlier to 2.17 trillion won ($1.5 billion) in 2024, falling far short of the market expectation of 2.65 trillion won compiled by FnGuide.
“Profitability was hit by one-off losses worth 1.3 trillion won caused by the company's pre-emptive measures for restructuring and a downcycle in the steelmaking industry,” Posco Holdings said.
Revenue fell 5.8 percent to 72.69 trillion won, also missing the average analyst estimate of 7.3 trillion won.
Net profit plummeted 48.6 percent to 950 billion won from 1.85 trillion won a year earlier.
Posco reported 1.47 trillion won in operating profit last year, down 29.3 percent on year. The company blamed the “overwhelming supply from China” for the decline.
Its annual revenue fell 3.6 percent to 37.6 trillion won.
Posco Future M, a battery maker, suffered the most amid slowing EV growth in global markets and the U.S. government's tightened regulations on graphite from “foreign entities of concern” such as China.
Posco Future M's operating profit plunged 98 percent to 700 million won, while revenue sank 22.3 percent to 3.7 trillion won.
The group pledged to cut costs and capital expenditure, which amounted to nine trillion won in 2024, to improve its profitability.
“Investment in batteries will be cut this year, but not by a large margin,” Posco Holdings said. “We will focus on our strengths and concentrate investment there by cutting unnecessary spending.”
BY SARAH CHEA [[email protected]]
with the Korea JoongAng Daily
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