Posco’s net profit in 2024 will drop by 44.2%

A report released by South Korea’s Posco Holdings on February 3 showed that in 2024, the revenue of its steel business fell by about 2.1% to 62.201 trillion won, operating profit fell by nearly 36% to 1.637 trillion won, and net profit fell by about 44.2% to 692 billion won. Among them, the capacity utilization rate of POSCO in the domestic steel business dropped from 87.7% last year to 86.6%, crude steel output (including carbon steel and stainless steel) fell by nearly 1.8% year-on-year to 35.047 million tons, steel output fell by nearly 1.2% year-on-year to 33.171 million tons, steel sales fell by about 1% year-on-year to 32.8 million tons (among which, the sales share of advanced + products increased by 1.5 percentage points year-on-year to 30.6%), revenue fell by about 3.6% to 37.556 trillion won, operating profit fell by nearly 29.3% to 1.473 trillion won, and net profit fell by nearly 23.6% to 902 billion won; overseas steel business revenue increased by nearly 1.1% to 20.713 trillion won, operating profit fell by nearly 79.9% to 39 billion won, and net loss expanded by nearly 8.8% to 149 billion won.

In the fourth quarter of 2024, the revenue of its domestic and foreign steel business fell slightly by about 0.2% month-on-month to 15.639 trillion won, operating profit fell by about 28.3% month-on-month to 334 billion won, and net profit turned from profit to loss to -6 billion won. Among them, the revenue of POSCO in China fell by nearly 2.1% month-on-month to 9.281 trillion won, operating profit fell by nearly 26.5% month-on-month to 322 billion won, and net profit fell by nearly 43.2% month-on-month to 146 billion won; the revenue of overseas steel business increased by nearly 1.1% month-on-month to 5.335 trillion won, operating profit increased by about 14.3% month-on-month to 8 billion won, and net profit turned from loss to profit to 64 billion won.

Including non-steel businesses, POSCO Holdings’ consolidated revenue in 2024 fell to 72.688 trillion won, gross operating profit (EBITDA) fell to 6.158 trillion won, operating profit fell to 2.174 trillion won, and net profit fell to 94.8 billion won.