POSCO seeks $1 bn restructuring amid weak steel, battery materials sectors

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POSCO has been under pressure from the intensifying competition with Chinese rivals, while POSCO Future M has been hurt by the prolonged weakness in the global electric vehicle market.“We will sell unprofitable businesses and non-core assets this year to improve asset efficiency,” POSCO Holdings said in an earnings call.“We aim to secure an additional 1.5 trillion won in cash by restructuring 61 units this year after generating 662.5 billion won by selling 45 businesses and assets last year.”POCO Holdings expects its earnings to improve in the second half.

South Korea’s POCO Holdings Inc.said on Monday it plans to sell 61 unprofitable and non-core assets to raise 1.5 trillion won ($1 billion) as part of a restructuring as it suffered a nearly 40% drop in profit due to sluggish steel and battery materials businesses.

POSCO Holdings, the parent of the world’s No.7 steelmaker POSCO and a major battery materials producer POSCO Future M Co., said its operating profit fell 38.5% to 2.2 trillion won on a consolidated basis in 2024 with sales down 5.8% to 72.7 trillion won.

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Article Details

Category: Economy

Markets: South KoreaChinaGuineaIndiaPapua New Guinea

Topics: Plans Materials Battery Trillion Holdings Steel Posco Future Group Poco Year

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-02-04 @ 16:06:58 (4 hours ago)

News Timezone: GMT +8:00

News Source URL: kedglobal.com

Language: English

Article Length: 368 words

Reading Time: 3 minutes read

Sentences: 16 lines

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Copyright Owner: © Korea Economic Daily

News ID: 25880048

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