POSCO
- 207,000.00 KRW
- -4,500.00
- -2.13%
South Korea
Aug 20, 2019Ticker
KRX(005490)Prev. close
211,500Market cap (KRW)
18,440.01BMarket cap (USD)
15,264.90MShares
87.18M
In the news
- Asian equities slump as yuan's tumble below 7 to dollar spooks investors Aug 5, 2019
- Inside the lose-lose trade fight between Japan and South Korea Jul 31, 2019
- Asian stocks gain as investors await US-China trade developments, ECB, Fed decisions Jul 23, 2019
- Top Indonesian steelmaker to downsize staff by 30% Jul 22, 2019
- Korean steel furnaces face shutdowns, in risk to manufacturing Jun 28, 2019 See more articles on POSCO
Company Background
Posco, South Korea's largest steelmaker, produced 41.48 million tons of crude steel in 2014. That made it No. 5 in the world.
Domestic production is concentrated at two integrated mills with blast furnaces, located in the cities of Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province.
The company also set up Southeast Asia's first blast furnace in the western part of Java, Indonesia, in a joint venture with Indonesian state-run enterprise Krakatau Steel.
The Pohang steelworks, South Korea's first plant with a blast furnace, came onstream in 1973. It was primarily funded with grants and soft loans provided by Japan in lieu of war reparations, based on the countries' 1965 treaty on basic relations.
Since the plant opened, Posco has underpinned South Korea's industrialization efforts. In 2000, the company was fully privatized after government-affiliated Korea Development Bank sold its entire stake.
For years, Posco was the dominant supplier of high-end steel plate to domestic customers. Today, the company is locked in a rivalry with Hyundai Steel, which belongs to the Hyundai Motor group and runs three domestic blast furnaces.
The competition centers on steel plate for automobiles and planks for ships.
In response to a surge in Chinese steel production, Posco has sought other revenue sources in recent years, such as trading and energy. Acquisitions, however, swelled the company's debt. Chairman Kwon Oh-joon, who took office in March 2014, said the company would reconsider its diversification strategy and refocus on steelmaking.
Posco is looking to land more orders from not only South Korean companies but also Japanese, European and other global automakers. It aims to leverage its Chinese and Mexican plants for hot-dip galvanized steel plate, used in cars.
The company supplies magnesium sheet, a new type of material, to German automaker Porsche.
Business Summary
Financial Highlights
| Dec 2018 | KRW | USD |
| Revenue | 64,977.77B | 59,042.90M |
| Gross Profit | 8,176.93B | 7,430.08M |
| Operating income | 5,479.50B | 4,979.02M |
| Income before tax | 3,562.82B | 3,237.40M |
| Net income | 1,672.89B | 1,520.09M |
| EBITDA | 8,747.13B | 7,948.19M |
| Diluted EPS | 20,910.98 | 19.00 |
| Dividends Per Share | 10,000 | 9.08 |
| Total Assets | 78,248.26B | 70,127.49M |
| Total liabilities | 31,688.09B | 28,399.44M |
| Total equity | 43,171.87B | 38,691.40M |
| Operating cash flow | 5,823.55B | 5,291.65M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 65,098.44B | 58,192.34B | 53,083.51B | 60,655.10B | 64,977.77B |
| Gross Profit | 7,363.33B | 6,616.42B | 6,794.74B | 8,473.42B | 8,176.93B |
| Operating income | 3,117.15B | 2,262.42B | 2,830.77B | 4,523.65B | 5,479.50B |
| Income before tax | 1,678.03B | 686,811.66M | 1,521.53B | 4,179.69B | 3,562.82B |
| Net income | 593,050.50M | 147,617.24M | 1,330.08B | 2,757.05B | 1,672.89B |
| EBITDA | 6,355.70B | 5,480.67B | 6,020.60B | 7,821.07B | 8,747.13B |
| Diluted EPS | 7,432 | 1,845 | 16,627 | 34,464 | 20,910.98 |
| Dividends Per Share | 8,000 | 8,000 | 8,000 | 8,000 | 10,000 |
| Total Assets | 85,252.17B | 80,408.75B | 79,762.99B | 79,024.95B | 78,248.26B |
| Total liabilities | 40,957.72B | 36,335.45B | 34,921.51B | 32,557.87B | 31,688.09B |
| Total equity | 40,590.44B | 40,238.43B | 41,376.51B | 42,735.95B | 43,171.87B |
| Operating cash flow | 3,342.38B | 7,534.10B | 5,201.32B | 5,539.52B | 5,823.55B |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 61,841.95M | 51,415.59M | 45,754.16M | 53,652.85M | 59,042.90M |
| Gross Profit | 6,994.98M | 5,845.91M | 5,856.57M | 7,495.22M | 7,430.08M |
| Operating income | 2,961.22M | 1,998.95M | 2,439.92M | 4,001.42M | 4,979.02M |
| Income before tax | 1,594.09M | 606.82M | 1,311.44M | 3,697.17M | 3,237.40M |
| Net income | 563.38M | 130.42M | 1,146.43M | 2,438.77M | 1,520.09M |
| EBITDA | 6,037.76M | 4,842.42M | 5,189.32M | 6,918.18M | 7,948.19M |
| Diluted EPS | 7.06 | 1.63 | 14.33 | 30.48 | 19.00 |
| Dividends Per Share | 7.59 | 7.06 | 6.89 | 7.07 | 9.08 |
| Total Assets | 77,561.90M | 68,575.97M | 66,039.89M | 73,817.15M | 70,127.49M |
| Total liabilities | 37,263.09M | 30,988.40M | 28,913.32M | 30,412.28M | 28,399.44M |
| Total equity | 36,928.94M | 34,317.02M | 34,257.75M | 39,919.62M | 38,691.40M |
| Operating cash flow | 3,175.18M | 6,656.72M | 4,483.16M | 4,900.02M | 5,291.65M |
Valuation Measures
| Dec 2018 | |
| PER | 11.62 |
| ROA | 2.12% |
| ROE | 3.89% |
| Operating margin | 8.43% |
| Profit margin | 2.57% |
Key executives
- Chairman & Co-Chief Executive Officer: Jeong-Woo Choi
- Co-President, Co-CEO & Director: In-Hwa Chang
- Senior Managing Director & Head-Finance: Seung-Kyu Lim
- Head-Legal & Compliance Support: Seong-Wook Lee
- Director & Senior Executive Vice President: Hag-Dong Kim
Shareholders
- National Pension Service of Korea (11.0%)
- POSCO (8.1%)
- NIPPON STEEL CORP. (3.3%)
- GIC Pte Ltd. (Investment Management) (2.3%)
- KB Financial Group, Inc. (2.2%)
- BlackRock Fund Advisors (2.2%)
- The Vanguard Group, Inc. (1.9%)
- POSCO Employee Stock Ownership Association (1.5%)
- Samsung Asset Management Co., Ltd. (1.1%)
- Dimensional Fund Advisors LP (1.1%)
Contact Details
- Website:http://www.posco.com
- Address: POSCO Center, 892 Daechi 4-dong, Seoul, 06194, South Korea
- Phone: +82.2.3457.0114
Related Companies
- Posco Venture Partners
- Posco Singapore LNG Trading Pte Ltd.
- Daewoo International (M) Sdn. Bhd.
- POSCO Philippine Manila Processing Center, Inc.
- HONG KONG POSCO E&C (CHINA) Investment Co. Ltd.
- POSCO India Holdings Pvt Ltd.
- Clean Po-hang Co., Ltd.
- Sebang Steel Co. Ltd.
- Posco Mexico Human Tech SA de CV
- HKT Bearings Ltd.
- POSCO China Suzhou Processing Center Co., Ltd.
- POS-Minerals Corp.
- POSCO Australia GP Pty Ltd.
- Posteel Co., Ltd. (South Korea)
- POSCO Vietnam Holdings Co. Ltd.
- Posmateinsure Insurance Broker Co., Ltd.
- POSBRO Co., Ltd.
- Chuncheon Clean Water Load Co., Ltd.
- Poscoenc Housing Planning Co., Ltd.
- POSPlate Co., Ltd.
- NRT Korea Co., Ltd.
- Suncheon Eco Trans Co., Ltd.
- Blue O&M Co., Ltd.
- PoHang Fuel Cell Co., Ltd.
- Pohang Scrap Recycling Center Co., Ltd.
- Mapo Hibroad Parking Co., Ltd.
- Basys Industry Co., Ltd.
- Cheongna IBT Co., Ltd.
- Posco MESDC SA de CV
- Posco MAPC SA de CV
Competitors
- NIPPON STEEL CORP.
- Severstal PAO
- JSW Steel Limited
- ArcelorMittal SA
- voestalpine AG
- Novolipetsk Steel
- Hyundai Steel Company
- Evraz PLC
- Nucor Corporation
- Hanjin Heavy Industries & Construction Holdings Co., Ltd.
- Dongbu Corporation
- Hanjin Heavy Industries & Construction Co., Ltd
- Iljin Materials Co., Ltd.
- Ternium S.A. Sponsored ADR
- Dongkuk Industries Co., Ltd.
- Kumho Industrial Co., Ltd.
- KCC Engineering & Construction Co., Ltd
- Kye-Ryong Construction Industrial Co., Ltd.
- Magnitogorsk Iron & Steel Works PJSC
- DB Inc.
- SeAH Holdings Corporation
- Champion Iron Ltd.
- PBG S.A.
- Yieh United Steel Corp.
- Outokumpu Oyj
- Great New Wave Coming Co., Ltd.
- Orbite Technologies Inc. Class A
- Sims Metal Management Limited
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Last Updated on 20 Aug, 2019