Net profit for the quarter ended March was 619 billion Korean won (about 450 million USD), down 26% from the same period a year ago, Posco said on Thursday. This figure was higher than the market expected and represented a significant improvement from the 321 billion won (USD 232 million) net loss in the fourth quarter.
First-quarter revenue fell 6.9% annually, while operating profit fell 17%.
Posco said high raw material prices due to the slowdown in the industry are weighing on its earnings. However, the rise in prices of steel products helped cushion the decline in operating profit.
POSCO Holdings announced today that it will focus its resources and capabilities on the group's core steel and secondary battery material businesses in the future. This strategic move will enable the company to keep up with changing market dynamics and global trends.
In the steel business, POSCO decided to transform its Smart Factory into a smart factory by integrating it with artificial intelligence (AI) to accelerate the transition to a low-carbon production system. This transformation is expected to significantly increase cost competitiveness and production efficiency.
In the secondary battery materials business, the company will focus on securing critical resources such as lithium to increase its resilience to fluctuations in raw material prices. Additionally, new market opportunities and business models will be explored, taking into account growth potential and profitability.
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