Asia300

POSCO

South Korea

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Sep 20, 2017
Prev close: 325,000
Sep 20, 2017
Market cap:
Market cap(USD):
28,335.72B
25,114.75M
Shares: 87.18M

Currency in KRW

Company profile

Market(Ticker): KRX(005490)
Sector:
Industry:
Non-Energy Minerals
Steel
Full time employees: 31,768

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. It was founded on April 1, 1968 and is headquartered in Pohang, South Korea.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 53,083.51B
Gross profit 6,794.74B
Operating income 2,830.77B
Income before tax 1,521.53B
Net income 1,330.08B
EBITDA 6,020.60B
Diluted EPS 16,627
Dividends per share 8,000
Total assets 79,762.99B
Total liabilities 34,921.51B
Total equity 41,376.51B
Operating cash flow 5,201.32B

Currency in KRW

Revenue 45,754.16M
Gross profit 5,856.57M
Operating income 2,439.92M
Income before tax 1,311.44M
Net income 1,146.43M
EBITDA 5,189.32M
Diluted EPS 14.33
Dividends per share 6.89
Total assets 66,039.89M
Total liabilities 28,913.32M
Total equity 34,257.75M
Operating cash flow 4,483.16M

Currency in USD

Valuation measures

Dec 2016

PER 15.48
ROA 1.66%
ROE 3.25%
Operating margin 5.33%
Profit margin 2.50%

Key executive

  • Chairman & Chief Executive Officer: Oh-Joon Kwon
  • President & Representative Director: Jin-Il Kim
  • Chief Operating Officer & Director: In-Hwan Oh
  • Director & Senior Executive Vice President: Young-Hoon Lee
  • Senior Executive Vice President: Tong-Il An

Share holders

  • National Pension Service of Korea(11.1%)
  • POSCO(8.2%)
  • Nippon Steel & Sumitomo Metal Corp.(3.3%)
  • KB Financial Group, Inc.(2.3%)
  • Saudi Arabian Monetary Agency (Investment Management)(2.3%)
  • BlackRock Fund Advisors(1.8%)
  • POSCO Employee Stock Ownership Association(1.7%)
  • The Vanguard Group, Inc.(1.6%)
  • SK Telecom Co., Ltd.(1.4%)
  • Woori Bank(1.0%)

Address

  • 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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