Concentrated Bullish Factors
Concentrated Bullish Factors
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  • 승인 2007.08.13 13:14
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POSCO has been getting one good assessment after another at home and abroad in recent weeks. Because it has globally sustainable companies, the highest growth rate, and an admirable corporate governance structure, it has become the most admired Asian company.

Furthermore, POSCO's shares are recommended as the highest promising stock of the 2000 point era nowadays by Meritz Securities Company. This is thanks to the company's sales increase of high value-added products such as automobile plates, electric plates and high-quality API. It is also due to the stable growth of the sales market and cost reductions.

POSCO was also chosen by domestic graduate students as the company which has the highest growth rate and the best corporate culture.

JobKorea, an online recruiting company, surveyed the company preferences of 520 graduate students over the country. According to POSCO, JobKorea's preference survey was conducted to the targeted 30 groups in which cross shareholding is restricted by the Fair Trade Commission in 2007 and the top 100 companies in sales at the end of 2006. There were 10 questionnaires held in separate groups. Questions included the company which has the best corporate culture, the highest growth rate, and the best management principles.

POSCO was chosen as both the company with the best corporate culture and the highest growth rate, according to the JobKorea poll. Also, POSCO placed second in both the company with the best corporate image and the company which has most contributed to the economic development of the country.

Touching upon the fact that POSCO was in the top five in most areas, POSCO officials said: "Our company was ranked as the 3rd best the company with superior capability of employees, employee benefits and social volunteer work."

Furthermore, POSCO was chosen as the company with the highest growth rate and ranked as the 2nd in individual capability, contribution to the national economy and management principles showing that Pan-POSCO was also highly appreciated.

Most admired Asian company

On the international front, POSCO was chosen as the Most Admired Asian Company by BusinessWeek, a weekly US business magazine.

As a result of its web site survey during the past few weeks, 14 companies from 5 countries including Korea, Japan, China, India and Singapore were chosen as the most admired Asian companies.

BusinessWeek evaluated that POSCO made innovations in established global technology in steel work and increased their profitability by leading the world in technology. FINEX was developed in conjunction with Siemens VAI, and is a next generation iron making technology.

The magazine mentioned that POSCO inaugurated a new FINEX plant that melted steel with coal dust rather than the more expensive hard-coking coal favored by most steelmakers from May of this year. FINEX technology is appreciated by domestic and foreign analysts as the best technology in steel work. Accordingly, POSCO has made a big step towards strengthening its leadership in global cost competition, the company's executives said.

What's more, POSCO was only chosen among domestic companies in GS Sustain Focus List, a list put together by Goldman Sacs, an investment banking group of the United States, lifting up its excellence as one of growing global companies with sustainability.

Goldman Sacs chose 44 companies that are growing with sustainability out of 120 global companies in 5 areas such as energy; metal and mining; food and beverage; pharmaceuticals and media. In the metal and mining area, POSCO was chosen among BHPB, Riotinto, and Voestalpine.

In order to proactively deal with the global era, POSCO executives explained: "The Company has advanced their corporate governance structure, promoted management transparency, and practiced transparent accounting based on the sound financial system, attracting good remarks from domestic and overseas professional institutions."

Furthermore, as a result of trying to do the best for sustainable growth in environmental and social responsibility since its foundation, POSCO was once chosen as a company which can survive after 100 years by domestic analysts, according to them.

POSCO, the highest growth rate

POSCO was chosen as the very best group in corporate governance structure for 2 consecutive years by the Corporate Governance Service.

The Service assessed external and structural sides of corporate governance structure based on the organization of a board of directors, protection of shareholder rights, management and auditing structure and distribution of management faults. It chose POSCO as the very best group alongside Woori Financial Group and SK Telecom.

POSCO has introduced a system for the protection of minority shareholders such as intensive voting and written votes. In addition, it operates an internal transaction committee to improve transparency in transactions with shareholders, POSCO officials said.

They note that a dividend of 17.32% was paid in the last 3 years on average, distributing reasonable management profits to shareholders.

On top of that, POSCO was chosen as an excellent company for shareholder value in the 3rd Award of Shareholder Value held by Money Today, a daily newspaper in Korea specializing in finance and equity.

Members in the judging committee commented: "Awarded companies including POSCO are exemplary with regard to the effort in improving corporate value by management, consistent purchase of treasury stock and high dividends."

Favorable tendency for expansion of strategic product sales

For the 2nd quarter of 2007, POSCO recorded the sales of 5.82 trillion won (US$ 6.33 billion), operating profits of 1.25 trillion won (US$ 1.36 billion) and net profit of 1.11 trillion won (US$ 1.21 billion), attaining more than one trillion won in operating income for 4 consecutive quarters.

Accordingly, POSCO recorded the total sales of 11.52 trillion won (US$12.5 billion) and operating profits of 2.36 trillion won (US$2.56 billion) respectively, achieving the largest total sales during the half[MW1] of the year.

By recording 781.7 million tons for crude steel production and 754.9 million tons for product sales, the sales, operating profit and net profit at POSCO increased by 2.0%, 12.1% and 13.3% respectively in comparison with the first quarter.

In the Investor Relations (IR) meeting for the 2nd quarter, held in the Korea Exchange on July 16th, POSCO executives said: "The company renovated and maintained major facilities including De P Converter construction of the 2nd steel works in Pohang Works on the 17th of March, rationalization in Gwangyang Works' Second Hot-rolling Plants on the 1st to 20th of February, and rationalization of Pohang Works' Second Cold-rolling Plant on the 29th of November 2006 to 29th March 2007. The company also completed the FINEX plant, so the production volume of crude steel and sales of products increased by 3.5% in comparison with the previous quarter."

Meanwhile, POSCO upgraded the target of sales and operating profits of this year respectively to 22 trillion won (US$25 billion) and 4.6 trillion won (US$5.01 billion), as POSCO expects that the steel market will go up again in the 4th quarter despite the decline in the 3rd quarter.

It is worth noticing that POSCO stock is also being recommended from securities firms as the highest promising share in the 2000 point age thanks to abundant bullish factors such as Chinese economic growth and M&A issues.


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