Posco Posts Net Loss on Lower Steel Prices

By Kwanwoo Jun

Posco Holdings reported a net loss for the final quarter of 2024, missing market consensus, as lower prices of steel and energy materials weighed heavily on its profit margins.

The South Korean steelmaker said Monday that it suffered from weak demand at home and abroad and China's oversupply of steel products that glutted global markets.

Posco also had to recognize heavy asset-impairment and inventory-valuation losses after suspending operations at some of its aged steel mills amid the industry downturn.

Its fourth-quarter net loss was 703.00 billion won, equivalent to $482.3 million, after three profitable quarters. That missed a FactSet-compiled consensus estimate for a profit.

Revenue was 17.805 trillion won for the quarter, with operating profit at 95.00 billion won. Both were significantly lower than the previous quarter.

The company's main steel business posted a net loss of 6.00 billion won, hit by lower steel prices and higher operating costs amid weakening sales.

For the full year, net profit nearly halved to 948.00 billion won and operating profit slumped 38% to 2.174 trillion won as revenue fell 5.8% to 72.688 trillion

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

02-03-25 0249ET