Welcome to our new website
As well as being able to load content faster than ever before, you'll now find it's much easier to find all the content you need about the Asian business world.
POSCO
- 311,500.00 KRW
- -2,000.00
- -0.64%
South Korea
Aug 16, 2018Ticker
KRX(005490)Prev. close
313,500Market cap (KRW)
27,333.07BMarket cap (USD)
24,189.62MShares
87.18M
In the news
- Nikkei Asia300 declines as Italian political uncertainty weighs May 29, 2018
- Nikkei Asia300 Index slips amid rising US yields Apr 24, 2018
- Nikkei Asia300 Index rises after China's central bank cuts RRR Apr 18, 2018
- Posco chief to step down after political pressure Apr 18, 2018
- Moon credentials hit by South Korean financial head debacle Apr 11, 2018 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 2017 | KRW | USD |
| Revenue | 60,655.10B | 53,652.85M |
| Gross Profit | 8,473.42B | 7,495.22M |
| Operating income | 4,523.65B | 4,001.42M |
| Income before tax | 4,179.69B | 3,697.17M |
| Net income | 2,757.05B | 2,438.77M |
| EBITDA | 7,821.07B | 6,918.18M |
| Diluted EPS | 34,464 | 30.48 |
| Dividends Per Share | 8,000 | 7.07 |
| Total Assets | 79,024.95B | 73,817.15M |
| Total liabilities | 32,557.87B | 30,412.28M |
| Total equity | 42,735.95B | 39,919.62M |
| Operating cash flow | 5,539.52B | 4,900.02M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 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 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 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 | |
| PER | 9.64 |
| ROA | 3.47% |
| ROE | 6.55% |
| Operating margin | 7.45% |
| Profit margin | 4.54% |
Key executives
- Chairman & Co-Chief Executive Officer: Jeong-Woo Choi
- Co-President, Co-CEO & Director: In-Hwa Chang
- 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 (10.8%)
- POSCO (8.2%)
- Nippon Steel & Sumitomo Metal Corp. (3.3%)
- KB Financial Group, Inc. (2.2%)
- BlackRock Fund Advisors (1.9%)
- The Vanguard Group, Inc. (1.7%)
- POSCO Employee Stock Ownership Association (1.6%)
- BlackRock Asset Management North Asia Ltd. (1.5%)
- Dimensional Fund Advisors LP (1.0%)
- Woori Bank (1.0%)
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
- 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.
- 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.
Competitors
- ArcelorMittal SA
- Hyundai Steel Company
- Severstal PAO
- Hoa Phat Group JSC
- Iljin Materials Co., Ltd.
- Dongbu Corporation
- JSW Steel Limited
- KCC Engineering & Construction Co., Ltd
- Outokumpu Oyj
- Ternium S.A. Sponsored ADR
- Hanjin Heavy Industries & Construction Co., Ltd
- Hanjin Heavy Industries & Construction Holdings Co., Ltd.
- Kumho Industrial Co., Ltd.
- Yieh United Steel Corp.
- Kye-Ryong Construction Industrial Co., Ltd.
- Seohee Construction Co., Ltd.
- Magnitogorsk Iron & Steel Works PJSC
- DB Inc.
- SeAH Holdings Corporation
- Dongkuk Industries Co., Ltd.
- G Steel Public Co., Ltd.
- PT Gunawan Dianjaya Steel Tbk
- Great New Wave Coming Co., Ltd.
- Orbite Technologies Inc. Class A
Copyright © 2018 FactSet Research Systems Inc. All rights reserved.
Last Updated on 16 Aug, 2018You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month
You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month
Your full access to the Nikkei Asian Review has expired
