POSCO

In the news

Old USSR lives on through thriving Vietnamese conglomerates Jan 6, 2020
Asian stocks rise amid monetary policy easing bets Oct 24, 2019
Asian stocks slump as US-China trade war intensifies Aug 26, 2019
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

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	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

KRW | USD

	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 (11.8%)
POSCO (8.1%)
NIPPON STEEL CORP. (3.3%)
GIC Pte Ltd. (Investment Management) (2.3%)
KB Financial Group, Inc. (2.2%)
BlackRock Fund Advisors (2.1%)
The Vanguard Group, Inc. (2.0%)
POSCO Employee Stock Ownership Association (1.5%)
Samsung Asset Management Co., Ltd. (1.5%)
Dimensional Fund Advisors LP (1.3%)

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.
Kye-Ryong Construction Industrial Co., Ltd.
Magnitogorsk Iron & Steel Works PJSC
Daiyang Metal Co., Ltd.
Moonbae Steel Co., Ltd.
DB Inc.
SeAH Holdings Corporation
Champion Iron Ltd.
PBG S.A.
Bookook Steel Co., Ltd.
Outokumpu Oyj
Sims Metal Management Limited
Great New Wave Coming Co., Ltd.
Nemaska Lithium Inc.
Orbite Technologies Inc. Class A

Last Updated on 17 Jan, 2020