ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Non-Energy Minerals

POSCO

  • 354,500.00 KRW
  • +5,000.00
  • +1.43%
  • South Korea
    Apr 20, 2018
  • Ticker
    KRX(005490)
  • Prev. close
    349,500
  • Market cap (KRW)
    30,471.80B
  • Market cap (USD)
    28,551.70M
  • 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 is engaged in the production of steel products. It operates through the following divisions: Steel, Engineering and 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 and Construction division includes 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 2017 KRWUSD
Revenue60,655.10B53,652.85M
Gross Profit8,473.42B7,495.22M
Operating income4,523.65B4,001.42M
Income before tax4,179.69B3,697.17M
Net income2,757.05B2,438.77M
EBITDA7,821.07B6,918.18M
Diluted EPS34,46430.48
Dividends Per Share8,0007.07
Total Assets79,024.95B73,817.15M
Total liabilities32,557.87B30,412.28M
Total equity42,735.95B39,919.62M
Operating cash flow5,539.52B4,900.02M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 61,864.65B 65,098.44B 58,192.34B 53,083.51B 60,655.10B
Gross Profit 7,001.40B 7,363.33B 6,616.42B 6,794.74B 8,473.42B
Operating income 2,885.06B 3,117.15B 2,262.42B 2,830.77B 4,523.65B
Income before tax 2,125.98B 1,678.03B 686,811.66M 1,521.53B 4,179.69B
Net income 1,358.08B 593,050.50M 147,617.24M 1,330.08B 2,757.05B
EBITDA 5,570.61B 6,355.70B 5,480.67B 6,020.60B 7,821.07B
Diluted EPS 17,409 7,432 1,845 16,627 34,464
Dividends Per Share 8,000 8,000 8,000 8,000 8,000
Total Assets 84,455.40B 85,252.17B 80,408.75B 79,762.99B 79,024.95B
Total liabilities 39,630.29B 40,957.72B 36,335.45B 34,921.51B 32,557.87B
Total equity 41,049.11B 40,590.44B 40,238.43B 41,376.51B 42,735.95B
Operating cash flow 4,858.13B 3,342.38B 7,534.10B 5,201.32B 5,539.52B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 56,509.65M 61,841.95M 51,415.59M 45,754.16M 53,652.85M
Gross Profit 6,395.36M 6,994.98M 5,845.91M 5,856.57M 7,495.22M
Operating income 2,635.33M 2,961.22M 1,998.95M 2,439.92M 4,001.42M
Income before tax 1,941.96M 1,594.09M 606.82M 1,311.44M 3,697.17M
Net income 1,240.52M 563.38M 130.42M 1,146.43M 2,438.77M
EBITDA 5,088.42M 6,037.76M 4,842.42M 5,189.32M 6,918.18M
Diluted EPS 15.90 7.06 1.63 14.33 30.48
Dividends Per Share 7.30 7.59 7.06 6.89 7.07
Total Assets 80,025.97M 77,561.90M 68,575.97M 66,039.89M 73,817.15M
Total liabilities 37,551.80M 37,263.09M 30,988.40M 28,913.32M 30,412.28M
Total equity 38,896.21M 36,928.94M 34,317.02M 34,257.75M 39,919.62M
Operating cash flow 4,437.61M 3,175.18M 6,656.72M 4,483.16M 4,900.02M

Valuation Measures

Dec 2017
PER9.64
ROA3.47%
ROE6.55%
Operating margin7.45%
Profit margin4.54%

Key executives

  • Chairman & Co-Chief Executive Officer: Oh-Joon Kwon
  • Co-President, Co-CEO & Director: Jeong-Woo Choi
  • Co-President, Co-CEO & Director: In-Hwan Oh
  • Managing Director & Head-Finance: Duk-Il Yoon
  • Vice President: Jong-Jin Choi

Shareholders

  • National Pension Service of Korea (10.7%)
  • POSCO (8.2%)
  • Nippon Steel & Sumitomo Metal Corp. (3.3%)
  • Saudi Arabian Monetary Agency (Investment Management) (2.3%)
  • BlackRock Fund Advisors (2.0%)
  • The Vanguard Group, Inc. (1.7%)
  • POSCO Employee Stock Ownership Association (1.6%)
  • BlackRock Asset Management North Asia Ltd. (1.1%)
  • Woori Bank (1.0%)
  • Dimensional Fund Advisors LP (0.9%)

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

  • 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.
  • Posco ES Materials 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
  • POSCO Vietnam Processing Center Co. Ltd.
  • Posco India Steel Distribution Centre Pvt Ltd.
  • POSCO (Wuhu) Automotive Processing Center Co. Ltd.
  • POSCO-India Delhi Steel Processing Centre Pvt Ltd.
  • POSCO Guangdong Automotive Steel Co. Ltd.
  • POSCO-TISCO (Jilin) Processing Center Co. Ltd.

Competitors

  • ArcelorMittal SA
  • Hyundai Steel Company
  • Severstal PAO
  • Hoa Phat Group JSC
  • Iljin Materials Co., Ltd.
  • Dongbu Corporation
  • KCC Engineering & Construction Co., Ltd
  • Metalurgica Gerdau SA Pfd
  • Ternium S.A. Sponsored ADR
  • Hanjin Heavy Industries & Construction Co., Ltd
  • Hanjin Heavy Industries & Construction Holdings Co., Ltd.
  • Kumho Industrial Co., Ltd.
  • Dongkuk Industries Co., Ltd.
  • Yieh United Steel Corp.
  • Kye-Ryong Construction Industrial Co., Ltd.
  • Seohee Construction Co., Ltd.
  • Magnitogorsk Iron & Steel Works PJSC
  • SeAH Holdings Corporation
  • Outokumpu Oyj
  • DB Inc.
  • G Steel Public Co., Ltd.
  • PT Gunawan Dianjaya Steel Tbk
  • Samsung Heavy Industries Co., Ltd
  • Great New Wave Coming Co., Ltd.
  • Orbite Technologies Inc. Class A
Last Updated on 20 Apr, 2018

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media