SEOUL, Aug. 17 (Korea Bizwire) — An analysis showed that the primary factor behind South Korean steel giant POSCO’s record-high second quarter results was the surge in its non-steel profits along with the recovery of its main steel business.
POSCO Chairman Choi Jeong-woo, who took office in July 2018, is assessed as having succeeded in transforming the steelmaker into an environment-friendly material company through massive investments in the areas of secondary battery materials and components.
The company’s non-steel profits amounted to 594.3 billion won (US$508 million) in the second quarter of this year, more than double the 276.2 billion won reported a year ago.
Non-steel profits accounted for 27 percent of POSCO’s overall profits, far higher than about 10 percent in and before 2016.
POSCO Chemical Co., an affiliate of POSCO specializing in secondary battery materials, tentatively recorded 773.9 percent growth in its consolidated operating profit in the second quarter of this year.
Such remarkable results were achieved despite some headwinds. The international price of iron ore, for example, shot up to $226.5 per ton in May, up 46.2 percent from $154.9 in February.
POSCO boosted its profitability by actively reflecting the cost increase in the price of steel products it supplies to large customers.
Kevin Lee (email@example.com)