POSCO Holdings Reports 9.1% Decline in Q3 Net Income Amid Steel Industry Challenges.

Seoul: POSCO Holdings Inc. announced on Wednesday a 9.1 percent decrease in its third-quarter net income, attributing the decline to a slump in the global steel industry and stagnant demand for electric vehicles. In a regulatory filing, the company reported that its net income for the July-September period was 497 billion won (US$359.6 million), compared to the previous year. According to Yonhap News Agency, POSCO Holdings' operating income for the same period dropped 38.3 percent year-on-year to 740 billion won, while sales decreased by 3.4 percent to 18.32 trillion won. Despite these weakened results, the company managed to surpass market expectations. Analysts, on average, estimated a net profit of 396 billion won, based on a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. Within its business divisions, POSCO reported a significant 39.8 percent decline in operating profit in its steel division. This drop occurred despite increased production and sales, as the higher num ber of blast furnaces was offset by reduced margins due to weak demand. In its overseas operations, POSCO's third-quarter operating profit plummeted by 90.1 percent to 7 billion won, primarily due to continued demand slowdown in China. In response to the earnings slump, POSCO Holdings expressed its commitment to investing in its core business areas to establish a foothold in future growth markets. The company stated, "We plan to continue investing in our two core business areas -- steel and secondary battery materials -- to overcome challenging market conditions and secure future growth markets." Furthermore, POSCO Holdings intends to expedite its restructuring efforts by increasing the number of low-profit businesses and non-core assets slated for divestment from 120 to 125. This strategy aims to streamline operations and enhance profitability.