POSCO plans to invest 4.2 trillion won (US$3.9 billion) group-wide this year, down 1.2 trillion won from a year earlier, the company said at an investor relations event held in Seoul. The gathering was attended by POSCO CEO Kwon Oh-joon. (image courtesy of Yonhap)
POSCO plans to invest 4.2 trillion won (US$3.9 billion) group-wide this year, down 1.2 trillion won from a year earlier, the company said at an investor relations event held in Seoul. The gathering was attended by POSCO CEO Kwon Oh-joon.
The steelmaker also said it will sell assets deemed to be “not core” to its business, while putting equity holdings in other affiliates up for sale and pushing for initial public offerings, a move intended to improve its financial structure and enhance competitiveness.
POSCO earlier reported that its consolidated-based sales grew 5.2 percent on-year to 65.1 trillion won, with operating profit rising 7.3 percent to 3.21 trillion won. But it posted a 58.9 percent plunge in net profit to 557 billion won for 2014.
“Last year, POSCO’s net profit sharply declined as one-off costs worth 1.2 trillion won were generated,” CEO Kwon told the IR session. “This year, we will make efforts to post more than 2 trillion won in net income.”
Kwon said that the company will strengthen its financial soundness by securing some 1 trillion won this year through planned corporate restructuring such as affiliate sales.
He added that it might be difficult to pursue an initial public offering of its affiliate, POSCO Energy, this year, given stagnant local stock markets.
“I think we have to wait for a while (for the IPO) as the stock markets are not good,” he said, adding that it may only be possible to secure funding from some investors via a pre-IPO placement this year.
(Yonhap)
