SEOUL, Oct. 24 (Yonhap) — POSCO Future M Co., the battery materials unit of POSCO Holdings Inc., reported Tuesday that its third-quarter net profit had taken a nosedive of 65 percent year-on-year, due to decreased material prices.
In the three months ended in September, the company’s net income dropped to 23.16 billion won (US$17 million) from 65.63 billion won in the same period of the previous year, according to a statement from the company.
“We had purchased raw materials, such as lithium and nickel, at high prices (for the manufacturing of electric vehicle batteries) but couldn’t pass the high material prices on to customers in the third quarter despite rebounding material costs,” a company spokesman said over the phone.
Operating profit also plummeted 55 percent to 37.14 billion won in the third quarter from 81.8 billion won a year ago. Sales rose 22 percent to 1.28 trillion won from 1.05 trillion won during the same period.
From January to September, net income decreased by 28 percent to 106.49 billion won from 148.06 billion won in the year-ago period, due to the same reasons, the statement said. Operating profit declined 33 percent to 109.54 billion won in the first nine months from 162.57 billion won a year ago. Sales rose 43 percent to 3.61 trillion won from 2.52 trillion won.
POSCO Future M, formerly POSCO Chemical Co., has mainly produced refractories and burnt lime, key materials used in the steelmaking process, since its foundation in 1971 as an arm of the country’s leading steelmaker. In recent years, the company has been aggressive in establishing its presence in the secondary battery components business, particularly with the materials used to make cathodes and anodes — core materials used in lithium-ion cells for EVs.
POSCO Future M touts itself as one of the few companies capable of producing both cathodes and anodes. It supplies cathodes to Samsung SDI Co., LG Energy Solution Ltd. and Ultium Cells LLC., the U.S. joint venture between LGES and General Motors Co.
kyongae.choi@yna.co.kr
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