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Non-Energy Minerals

POSCO

  • 207,000.00 KRW
  • -4,500.00
  • -2.13%
  • South Korea
    Aug 20, 2019
  • Ticker
    KRX(005490)
  • Prev. close
    211,500
  • Market cap (KRW)
    18,440.01B
  • Market cap (USD)
    15,264.90M
  • Shares
    87.18M

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

POSCO engages in the production of steel products. It operates through the following divisions: Steel, Engineering & Construction and Trading. The Steel division produces cold rolled, hot rolled and stain less steel products, plates, wire rods and silicon steel sheets. The Engineering & Construction division engages in the planning, designing and construction of industrial plants, civil engineering projects, commercial and residential buildings. The Trading division exports and imports steel products and raw materials. The company was founded on April 1, 1968 and is headquartered in Pohang, South Korea.

Financial Highlights

Dec 2018 KRWUSD
Revenue64,977.77B59,042.90M
Gross Profit8,176.93B7,430.08M
Operating income5,479.50B4,979.02M
Income before tax3,562.82B3,237.40M
Net income1,672.89B1,520.09M
EBITDA8,747.13B7,948.19M
Diluted EPS20,910.9819.00
Dividends Per Share10,0009.08
Total Assets78,248.26B70,127.49M
Total liabilities31,688.09B28,399.44M
Total equity43,171.87B38,691.40M
Operating cash flow5,823.55B5,291.65M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 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 2014Dec 2015Dec 2016Dec 2017Dec 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
PER11.62
ROA2.12%
ROE3.89%
Operating margin8.43%
Profit margin2.57%

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
Last Updated on 20 Aug, 2019

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