The company held an Investor Relations meeting on April 21, where it announced that it had recorded 15.1 trillion won in sales revenue and 731 billion won in business profit on a consolidated basis for the first quarter.

Although sales revenue decreased slightly compared to the same period last year, business profit figures remained the same, thanks primarily to the expansion of the sales volume of higher value-added products, such as automotive steel, and the profits it has earned from its gas fields in Myanmar. Meanwhile, profitability also slightly increased by 4.8%. Net profit significantly increased, recorded at 370 billion won.

Solution Marketing Contributes to Increased Sales

With the expansion of solution marketing targeting clients in the main areas of industrial demand, such as automotive, shipbuilding, home appliances and construction, the sales of high value-added steel and world premium products have increased from 32.7% to 36% since the first quarter of last year. In particular, with POSCO’s automotive steel being recognized for its quality and technical value, it recorded 2.07 million tons of sales, which represents a 6% rise in year-on-year sales. This growth was achieved by expanding domestic sales as well as exports to automotive companies in Japan and Europe.

An Update on Global Projects

Daewoo International’s gas field in Myanmar has maintained stable business profit following its initiating commercial production, having swung into the black in December of last year. POSCO Energy can expect stable profits as the commercial operation of the Mong-Doung 2, a coal-fired power plant in Vietnam, which is partially owned (30%) by POSCO Energy, was launched in March.

High Value-Added Product Expansion Leads to Business Profit Increases

POSCO recorded 6.79 trillion won in sales revenue and 622 billion won in business profit. Despite the decrease in sales prices, business profit was able to increase by more than 20% from the level of last year thanks to the expansion of high value-added products, while profitability stood at 9.2%, which is 2.2% higher than that of last year’s numbers.

This is the result of customer-oriented solution marketing, which provides financial support to application technologies for the products customers want from the stage of product development. In other words, solution marketing has been largely responsible for the increase in high value-added product sales.

The volume of product sales through solution marketing activities is 470,000 tons, and includes the substitution of STS steel in heat pipes for chillers, the supplying of thick plates guaranteed by Brittle Crack Arrest (BCA) for the first time in the world, and the development of magnesium panels, a new lightweight material for cars. This volume represents an increase of 9% compared to the fourth quarter of last year.

New Growth Businesses and Organizational Reengineering

POSCO has discovered new sources of profit using the distinct technologies of steel and materials through the selection and concentration of new growth businesses. POSCO has established a foundation for the export of FINEX facilities and technologies by signing an MOA for the installation of FINEX plant No. 1 with the Indian steel company Mesco Steel. Furthermore, POSCO proved its mass production technology by succeeding in the operation of a bulk storage demonstration plant installed in Argentina for the processing of lithium, a material used in secondary batteries.

Meanwhile, POSCO is currently undergoing a process of organizational reengineering with the disposal of non-core assets and low-profit businesses. Specifically, POSCO PLANTEC is experiencing reorganization efforts, such as the streamlining of personnel and the withdrawal of deficit businesses, and it has signed an MOU for the share sale of POSCO E&C with Public Investment Fund (PIF), the Saudi Arabian sovereign wealth fund.

The Global Contribution of the Steel Industry

Did you know that steel is making the world a better place every day? The amount of daily steel production is enough to build 548 Eiffel towers. Also, steel companies provided 7.8 days of training to each employee in 2013 and 8 million people which is about the same as the population of Switzerland, is working in the steel industry. Moreover, the $100 billion paid in tax is equivalent to putting 10 million students through school each year or building 5,000 new hospitals!

Watch this interesting video created by worldsteel to learn about steel’s global contribution!

Can You Imagine Your Day without Steel?

As mentioned above, steel is enriching the world every day. And, this marvelous material accompanies us through the day: in the bedroom, at work and every where we go. Did you know that steel is indispensable to our daily lives? If you are doubtful, just check the infographic below!

Even More Steel?

Have you ever imagined how pervasive steel is? Can you think of more steel use in our everyday life? Check out our previous postings to learn about the material’s ubiquitous presence in our life and share with us if you can think of anything more!

• What are Automobiles Made of?
  

The automobile is an important part of our daily lives. And steel is a crucial requirement to build this important part. POSCO’s light, but also very durable automotive steel sheets are advancing the global auto industry.

• What is Steel Used For?
  Steel brings amusement and vibrancy to our lives by bringing musical tunes to our ears. Find out more about what steel is used for and how steel is dissolved into our daily lives.

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Worldsteel’s #lovesteel Campaign

In September 2013, the worldsteel launched its #lovesteel campaign for social media and worldsteel website. The #lovesteel campaign is a series of short videos that highlight working experiences in the steel industry. The series consists of interviews of people of worldsteel member companies, and their insights on exciting world of the steel industry to inspire young people who are interested in steel career.

POSCO Also Participated!

In fact, as a member company of worldsteel, POSCO was one of the participants of the campaign. The 14^th video of the series features Yerim Kim who is working in Investor Relations at POSCO. Let’s find out what inspires Yerim to work in the steel industry by watching the video below.

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If one thinks “working in the steel industry would be boring and stiff as steel”, then he/she is hugely mistaken. In an attempt to eliminate any prejudices similar to this, World Steel Association (worldsteel) launched #Lovesteel Campaign in September 2013. In a form of a series, the campaign illustrates short interviews of young employees and their passions and love toward the steel industry. Furthermore, #Lovesteel Campaign presents how starting a career in steel industry can be indeed exciting and attractive despite the common misconceptions toward the industry.

Whether you are a potential employee considering working in the steel industry or a current employee seeking to build up the career, #Lovesteel Campaign is an excellent source of information and opportunities not to be missed! 

#Lovesteel’s 14^th Participant Company, POSCO

Thirteen companies have been participating in #Lovesteel Campaign since the initial launch in September 2013. POSCO became the 14^th company to join the campaign. Let’s look into episodes of #Lovesteel Campaign POSCO!

1.        Can you introduce yourself and tell us about your job?

My name is Yerim Kim, I’m working in Investor Relations at POSCO. My job is to understand the company’s strategy and business activities in order to find a way to convey these effectively to our investors worldwide. So I have to be aware and stay keen on the events that are going on in-house and also the events that are going on outside the company.

2.        How did your education and experience lead to this job?

I majored in both English literature and business and I always wanted to work in a field where I could make use of both of my academic backgrounds. I got to know the company while working in a previous job in media. I love the idea of the company and its willingness to move forward, so I always wanted to be involved. And as a result, I have ended up in here now.

3.        What do you most like about your job?

The best part of my job is that I get to meet a wide range of people: they’re from all over the world and from different backgrounds but their main interest is the same: it’s about POSCO. So in my work, I get to fulfill their interests and their inquiries. I also get a chance to know my company better, which is very rewarding.

4.        What has most surprised you about the steel industry? 

The most surprising thing about the industry is that it covers a wide spectrum of businesses. In order to understand the dynamics of the steel industry, you have to understand the trend of raw materials, and the trend of demand industries such as automobile and ship-building. So while following all the economic trends, you also get to obtain broader perspectives in global business.

5.        What do you love about steel?

What I love about steel is its availability. You find it every day in your life around you, for example in bicycles, steel products, and even this building where we’re standing in right now. So I get to find inspiration to my work all around me. If you’re looking for something dynamic, steel will be your answer.

Meet other young people in steel field with #Lovesteel videos

You can take a look at more young workers’ stories here.