Park KwangRae's questions to POSCO HOLDINGS (PKX) leadership • Q2 2024
Question
Asked for the sales and profit outlook for the steel business in the second half of the year and questioned whether the restructuring of noncore assets could lead to short-term losses and volatility.
Answer
POSCO projects higher steel sales volume in H2 due to facility normalization, which should improve margins despite falling prices in Q3, as raw material costs are expected to fall further. They acknowledged that restructuring noncore assets could cause temporary losses, but these will be spread over several years and are expected to be covered by cash generation and improved consolidated earnings, minimizing the impact on any single year.