In the second quarter, the earnings of POSCO DX (022100) worsened due to the delay in customer corporate investments. They explained that the decline in operating profit by 29.1% year-on-year to 243 billion won was due to the impact of delayed investments by customer companies in response to weak demand for steel and secondary batteries. For the second half of the year, the strategy is to explore DX businesses within the group to reduce labor costs and increase operating profit by actively utilizing overseas development centers.
According to the provisional results announced on the 25th, POSCO DX recorded 353 billion won in sales and 243 billion won in operating profit for the second quarter on a consolidated basis. This represents a 4.4% decrease in sales and a 29.1% decrease in operating profit compared to the same period last year. Net profit for the same period decreased by 28% to 204 billion won.
POSCO DX attributed the second-quarter performance to the impact of delayed investments by major customers in the EIC (Factory) Automation business unit, where new orders have decreased compared to the same period last year. However, the order backlog remained relatively stable. The company also noted positive changes in the revenue mix with the expansion of emerging growth sectors such as cathode materials, ore-processing lithium, and the Gwangyang LNG terminal. Operating profit margin decreased slightly to 7.8% from 9.4% year-on-year, attributed to factors such as increases in raw material costs and one-time expenses.
In the IT services business unit, performance was sustained thanks to new orders. The company emphasized the importance of cost reduction and securing competitiveness through DX initiatives within the group’s EIC business unit in response to the reduction in CAPEX for secondary battery materials and steel sectors in the second half of the year. Looking ahead, POSCO DX plans to pursue opportunities in projects such as the automation of cranes at steel mills and environmentally friendly projects like carbon reduction through electric furnaces.
Furthermore, in the IT services business unit, plans include standardizing group business practices, upgrading group IT standards, and optimizing group IT costs through a cloud-based subscription model called “One-IT.” The company also aims to improve profitability through the efficient utilization of development resources by leveraging overseas development centers in countries like Vietnam.
A POSCO DX official expressed expectations for continuous growth in related fields, aligning with POSCO Group’s goal to achieve approximately 11 trillion won in group revenue from the secondary battery materials business by 2026, which indicates a positive outlook for POSCO DX in the eco-friendly new materials sector.