The following is a summary of the POSCO Holdings Inc. (PKX) Q1 2024 Earnings Call Transcript:
Financial Performance:
In Q1 2024, POSCO Holdings' revenue decreased 3% quarter-over-quarter to KRW 18.52 trillion.
Operating profit showed a robust growth, increasing by 92% to KRW 583 billion owing to profit recovery of the steel subsidiary POSCO and reversal of inventory impairment losses in the rechargeable battery materials business.
The operating profit in the steel business showed a slight fall to KRW 339 billion, while the infrastructure business recorded a noticeable operating profit of KRW 340 billion.
The company has plans to slightly reduce its capital expenditure for the year, as compared to the initial plan to avoid impacting operating profit excessively.
Business Progress:
POSCO has built a new vision emphasizing on materials for tomorrow and innovation for excellence.
Despite the slowdown in the EV market, POSCO sees it as an opportunity to grow and innovate in the battery materials business, highlighting their R&D advancements in lithium metals and dry recycling.
To fortify its global competitiveness, the company plans on internally sourcing 70% of the lithium and nickel required for cathode active materials.
POSCO's roadmap to achieve carbon neutrality includes the development of the HyREX pilot facility, projected to be completed by February 2026.
The company plans to increase prices in response to raw materials costs trends and exchange rates, while simultaneously addressing issues of illegally imported goods and price dumping.
POSCO is recognizing potential in high growth markets such as India, Indonesia, and North America and plans on continuation of its existing strategy in these regions.
Future product plans include shifting their focus towards lithium carbonate production.
More details: POSCO IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.