POSCO Chairman Choi Jeong-woo gives words of encouragement to staffers at a lithium extracting site in Argentina on Oct. 19. (Photo: POSCO)

In a news conference on Oct. 24, POSCO Group announced that it logged 15.988 trillion won in sales, 1.039 trillion won in operating profit, and 496.8 billion won in net profit during the July-September period on a consolidated basis.

The steel business sector saw operating profit decline from the previous quarter, but the group chalked up more than 1 trillion won in operating profit for the ninth consecutive quarter on the back of its global infrastructure business division, such as rising sales in the Myanmar gas field of POSCO International, a rise in the progress of plant projects by POSCO E&C, and a rise in electricity sales of POSCO Energy. The group’s ratio of operating profit to sales stood at 6.5 percent.

POSCO’s posted 7.735 trillion won in sales, 662.5 billion won in operating profit, and 499 billion won in net profit, according to its financial statements.

As operations returned to normal following the completion of repairs during the 2nd quarter, steel sales rose, but the operating profit growth rate declined 8.5 percent compared with the previous quarter due to a rise in raw material prices.

Borrowings rose a little due to the issuance of corporate bonds in the third quarter, but the debt rate registered at 65.7 percent on a consolidated basis to maintain a stable financial standing.

Meanwhile, POSCO, predicting that demand of Korean demand industries such as automobiles and construction will decline compared with last year, saw that the domestic steel economy recovery might be delayed to some extent.

But demand of advanced countries such as the United States and Europe are sagging, but on the back of China’s demand that shows signs of a steady rise following the effects of infrastructure and real estate development, expanded investments and tax reduction steps, the global steel demand is forecast to increase gradually.

POSCO Chmn. Choi Tours Group’s New Core Growth Site in Argentina

POSCO Chairman Choi Jeong-woo toured a lithium extracting site in Argentina, the group’s new core growth engine.

Chairman Choi visited the group’s site on Oct. 19in the Hombre Muerto Salar, an area of active lithium production by FMC at the Fenix lithium mine, and gave words of encouragement to staffers.

POSCO struck a deal to buy lithium mining rights in Argentina from Galaxy Resources for $280 million, beefing up the Australian miner’s funds to dig a lithium mine on neighboring ground. POSCO also plans to build a lithium plant in Argentina, planning to produce 25,000 tons of the commodity per year for 20 years starting from 2021.