KwangRae Park's questions to Posco Holdings Inc (PKX) leadership • Q2 2024
Question
KwangRae Park of Shinhan Investment Securities asked for the steel business outlook for the second half, specifically regarding sales volume and profit margins, and inquired about potential short-term earnings volatility from the non-core asset restructuring.
Answer
An executive from the Steel business projected a 1 million ton sales increase in H2, with slightly improved mill margins as raw material cost declines are expected to outpace steel price drops. Regarding restructuring, another executive acknowledged the possibility of temporary losses but stated they would be spread over several years and covered by cash generation and improved earnings from the remaining portfolio, thus minimizing short-term impact.