POSCO Future M Q3 Operating Profit Down 96.3% YoY Due to "Anode Material Sales Slump"

"Cost Reduction Efforts to Overcome the Chasm"

POSCO Future M announced on the 30th that it recorded consolidated sales of 922.8 billion KRW and an operating profit of 1.4 billion KRW in the third quarter.

Sales and operating profit decreased by 28.2% and 96.3%, respectively, compared to the same period last year.

Panoramic view of POSCO Future M Gwangyang Cathode Material Plant. [Photo by POSCO Future M]

The battery materials business recorded sales of 583 billion KRW due to strong sales of high value-added high-nickel cathode materials, including NCA (Nickel-Cobalt-Aluminum) cathode materials, and improved product mix, but posted an operating loss of 15.8 billion KRW due to valuation losses on long-held cathode material inventory and decreased anode material sales.

The basic materials business recorded sales of 339.8 billion KRW and an operating profit of 17.2 billion KRW as sales of quicklime increased due to the shutdown and restart of POSCO's blast furnace, the selling price of Hwaseong products rose, and demand for converter repairs also increased.

POSCO Future M stated, "To overcome the electric vehicle chasm (temporary demand slowdown), we are actively pursuing cost reduction and competitiveness enhancement through securing low-cost raw materials and improving process efficiency," adding, "We plan to improve profitability by discovering additional new domestic and overseas customers and diversifying our product portfolio."