POSCO Holdings Inc.

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See more articles on POSCO Holdings Inc.

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 Holdings Inc. 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 stainless 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 by Tae-Joon Park on April 1, 1968 and is headquartered in Pohang, South Korea.

Financial Highlights

Dec 2021	KRW	USD
Revenue	76,332.34B	66,656.52M
Gross Profit	11,995.31B	10,474.79M
Operating income	9,246.45B	8,074.38M
Income before tax	8,766.50B	7,655.26M
Net income	6,610.56B	5,772.61M
EBITDA	12,825.89B	11,200.10M
Diluted EPS	85,376.75	74.55
Dividends Per Share	17,000	14.84
Total Assets	91,471.61B	76,947.73M
Total liabilities	36,866.05B	31,012.45M
Total equity	50,227.97B	42,252.76M
Operating cash flow	6,242.87B	5,451.53M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	60,655.09B	64,977.77B	64,366.84B	57,792.79B	76,332.34B
Gross Profit	8,473.42B	8,176.93B	6,396.30B	4,810.52B	11,995.31B
Operating income	4,523.65B	5,479.50B	3,788.53B	2,349.38B	9,246.45B
Income before tax	4,179.69B	3,562.82B	2,779.53B	1,891.78B	8,766.50B
Net income	2,757.05B	1,672.89B	1,828.41B	1,595.45B	6,610.56B
EBITDA	7,821.07B	8,747.13B	7,249.64B	5,971.12B	12,825.89B
Diluted EPS	34,463.81	20,910.98	22,822.75	20,164.81	85,376.75
Dividends Per Share	8,000	10,000	10,000	8,000	17,000
Total Assets	79,024.95B	78,248.26B	79,058.66B	79,086.97B	91,471.61B
Total liabilities	32,557.86B	31,688.09B	31,463.33B	31,611.76B	36,866.05B
Total equity	42,735.95B	43,171.87B	44,272.48B	44,131.96B	50,227.97B
Operating cash flow	5,539.52B	5,823.55B	5,988.16B	8,669.19B	6,242.87B

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	53,652.85M	59,042.90M	55,194.40M	48,981.60M	66,656.52M
Gross Profit	7,495.22M	7,430.08M	5,484.81M	4,077.10M	10,474.79M
Operating income	4,001.42M	4,979.02M	3,248.65M	1,991.19M	8,074.38M
Income before tax	3,697.17M	3,237.40M	2,383.44M	1,603.36M	7,655.26M
Net income	2,438.77M	1,520.09M	1,567.86M	1,352.21M	5,772.61M
EBITDA	6,918.18M	7,948.19M	6,216.55M	5,060.75M	11,200.10M
Diluted EPS	30.48	19.00	19.57	17.09	74.55
Dividends Per Share	7.07	9.08	8.57	6.78	14.84
Total Assets	73,817.15M	70,127.49M	68,363.23M	72,803.98M	76,947.73M
Total liabilities	30,412.28M	28,399.44M	27,206.83M	29,100.39M	31,012.45M
Total equity	39,919.62M	38,691.40M	38,283.09M	40,625.94M	42,252.76M
Operating cash flow	4,900.02M	5,291.65M	5,134.83M	7,347.47M	5,451.53M

Valuation Measures

Dec 2021
PER	3.14
ROA	7.75%
ROE	14.01%
Operating margin	12.11%
Profit margin	8.66%

Key executives

Chairman & Co-Chief Executive Officer: Jeong-Woo Choi
Co-Chief Executive Officer & Director: Jung-Son Chon
Co-President, Co-CEO & Director: In-Hwa Chang
Senior Managing Director & Head-Finance: Seung-Kyu Lim
Head-Legal & Compliance Support: Seong-Wook Lee

Shareholders

POSCO Holdings Inc. (9.5%)
National Pension Service of Korea (8.7%)
GIC Pte Ltd. (Investment Management) (4.3%)
NIPPON STEEL CORP. (3.3%)
BlackRock Fund Advisors (2.1%)
The Vanguard Group, Inc. (2.0%)
Fidelity Management & Research Co. LLC (1.8%)
POSCO Holdings Inc. Employee Stock Ownership Association (1.4%)
ARGA Investment Management LP (0.8%)
Samsung Asset Management Co., Ltd. (0.7%)

Contact Details

Website:http://www.posco.com
Address: POSCO Center, 892 Daechi 4-dong, Seoul, 06194, South Korea
Phone: +82.2.3457.0114

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Competitors

Baoshan Iron & Steel Co., Ltd. Class A
GS Holdings Corp.
ArcelorMittal SA
Hyundai Steel Company
POSCO M-TECH Co., Ltd.
Korea Electric Power Corporation
Korea Gas Corporation
PJ Metal Co., Ltd.
S-Oil Corporation
SK Inc.
KUMHO Engineering & Construction Co., Ltd.
Dongbu Corporation
Dongkuk Industries Co., Ltd.
HJ SHIPBUILDING & CONSTRUCTION CO. LTD
POSCO Chemical Co., Ltd.
Kye-Ryong Construction Industrial Co., Ltd.
Ternium S.A. Sponsored ADR
SeAH Holdings Corporation
Daiyang Metal Co., Ltd.
Chosun Refractories Co., Ltd
Moonbae Steel Co., Ltd.
PBG S.A.
Outokumpu Oyj
Hanchang Corp.
Nickel Industries Limited
Orbite Technologies Inc. Class A
Peabody Energy Corporation

Last Updated on 10 Aug, 2022