Consolidated sales of KRW 72.688 trillion, an operating profit of KRW 2.174 trillion, and a net profit of KRW 948 billion
Reflecting KRW 1.3 trillion in non-cash losses resulting from valuation loss due to market deterioration and preemptive restructuring
Increased business efficiency with the early stabilization of a new plant for rechargeable battery materials and portfolio rebalancing
Restructuring of low-yield businesses and non-core assets…To complete 106 projects by 2025 for KRW 2.1 trillion in cumulative cash generation
POSCO Holdings reported 2024 consolidated sales of KRW 72.688 trillion, operating profit of KRW 2.174 trillion, and net profit of KRW 948 billion. It also announced measures to reinforce competitiveness to overcome the crisis and reform.
The deterioration of the domestic and international business environment, such as sluggish domestic and international steel demand, oversupply of steel by China, and falling prices of key minerals, affected the performance of the steel and rechargeable battery materials business last year. In addition, non-cash losses of KRW 1.3 trillion, including one-time impairment losses from preemptive restructuring of low-yield assets and the process of increasing business efficiency, and valuation losses due to deteriorated market conditions. As a result, POSCO Holdings’ consolidated sales, operating profits, and net profits decreased by 5.8%, 38.4%, and 48.6%, respectively, compared to the previous year.
In the steel sector, sales and operating profit decreased year-on-year due to sluggish demand and reduced production and sales. In the rechargeable battery sector, POSCO Future M’s performance decreased due to a drop in metal prices and a decrease in sales volume following the postponement of the U.S. FEOC designation of natural graphite.
The infrastructure sector successfully defended its profitability through stable revenue generation from POSCO International’s energy value chain expansion and increased orders from POSCO E&C.
POSCO Holdings also made progress in the group’s business results last year. With the management vision “Materials That Open the Future, Innovation for World-Class Excellence,” POSCO Holdings continued its carbon neutrality efforts last year by developing hydrogen reduction steelmaking technology and building an electric arc furnace. It also laid the foundation for strengthening its global business by signing an MOU for collaboration in steel, rechargeable battery materials, and energy with India’s JSW.
Furthermore, POSCO Holdings further strengthened its competitiveness in the steel, rechargeable battery materials, and infrastructure business sectors by completing domestic and overseas lithium upstream and downstream production plants and continuing the expansion of gas fields in Myanmar and Australia.
POSCO Holdings also focused on enhancing shareholder value by using KRW 100 billion from cash inflows generated through asset restructuring to repurchase and retire treasury shares. It has committed to retiring 6% of its treasury shares over three years and retired 2% in 2024.
POSCO Holdings also announced strategies to strengthen its business competitiveness to overcome current challenges and prepare for a sustainable future.
POSCO Holdings plans to secure global business opportunities in the steel business by expanding investments in high-growth, high-profit markets such as India and North America, achieve tangible results in the carbon neutrality sector, and reinforce its fundamental competitiveness through structural cost innovation with facility strengthening and efficiency improvements.
For the rechargeable battery materials business, POSCO Holdings will focus on establishing a stable revenue base with the early stabilization of operations at new domestic and overseas plants, including the first phase of a brine lithium project in Argentina and ore lithium plants 1 and 2, recycling facilities, and a silicon anode plant in Korea, and expansion of customer product certifications. Additionally, POSCO Holdings will focus on securing high-quality resources through initiatives such as bidding for lithium brine projects in Chile’s Maricunga and Alto Andinos regions and expanding lithium development cooperation with Australia’s Hancock and rebalancing its portfolio by adjusting the pace of low-profit businesses.
Moreover, POSCO Holdings plans to maintain financial soundness and improve asset efficiency by completing its ongoing restructuring initiatives without disruption.
In 2023, POSCO Group completed 45 out of 125 low-yield business and non-core asset restructuring projects, generating KRW 662.5 billion in cash, and plans to complete an additional 61 projects by the end of this year to secure a cumulative total of KRW 2.1 trillion in cash from 106 projects. It will increase asset efficiency and be a financial resource for future growth investments.