POSCO Future M Q2 Operating Profit at 773 Million Won, Down 71.7% Year-on-Year

Battery Materials Post 25.5 Billion Won Loss
"Profitability Expected to Improve in Second Half"

POSCO Future M announced on the 18th that its provisional consolidated operating profit for the second quarter of this year was 773 million won. This figure represents a 71.7% decrease compared to the same period last year.

Exterior view of POSCO Future M Gwangyang Cathode Material Plant. POSCO Future M

Although this is a decline from the previous quarter's operating profit of 17.2 billion won, the company maintained a profit for two consecutive quarters despite sluggish market conditions.

Second-quarter revenue was 660.9 billion won, down 27.8% year-on-year, and the net loss amounted to 35.5 billion won.

By business segment, the core energy materials division posted an operating loss of 25.5 billion won. While anode material sales volume saw a slight increase, cathode material sales volume declined.

POSCO Future M explained, "Profitability deteriorated due to lower operating rates resulting from decreased sales volume, and inventory valuation losses occurred due to a decline in net realizable value (NRV)."

The basic materials business recorded an operating profit of 26.3 billion won. The plant segment saw a slight increase in revenue thanks to higher maintenance and new order volumes from customers, while the lime and chemical businesses contributed to profitability by reducing costs through facility improvements and increased sales volumes.