Posco Holdings to Report Third-Quarter Results

Posco Holdings, a South Korean steelmaker, is set to report its third-quarter results on Tuesday. Here are the key details:

Net Profit Forecast

According to a FactSet consensus estimate, Posco is expected to report a net profit of KRW794.84 billion ($588.6 million) for the July-September quarter. This would represent a 34% increase compared to the same period last year.

Revenue Forecast

Preliminary earnings forecasts indicate that the company's revenue and operating profit for the quarter are projected to be KRW19 trillion and KRW1.2 trillion, respectively. This would translate to a 10% decrease in revenue and a 33% increase in operating profit compared to the previous year.

What to Watch

Recovery

Investors will be closely monitoring Posco's progress towards recovery. Despite a turnaround earlier in 2023 following a loss caused by a storm that affected its South Korean steel mill in September 2022 and disrupted operations for several months, the company still faces challenges ahead.

Steel Demand

Analysts point out that Posco is grappling with weak steel demand in both South Korea and China, along with higher input costs due to increased coking coal prices. Although favorable comparison bases from the previous year may make this year's earnings appear solid, these factors pose ongoing obstacles for the company.

Battery-Material Business

The recent decline in lithium prices is also impacting Posco's battery-material business, according to market analysts.