POSCO’s Net Profit Expands by 2.8 Times for Apr-Jun

POSCO, South Korean largest steel maker announced on Tuesday its non-consolidated net profit expanded by 2.8 times to 1.196 trillion won (approximately 88.6 billion yen) for April-June 2010 from the corresponding period of 2009. Steel market price was favorable and steel export to emerging countries increased. Crude steel production increased by 17.3% to 8.363 million tonnes and steel sales volume increased by 11.7% to 7.831 million tonnes. Compared with the previous quarter, crude steel output increased by 1.6% and steel sales increased by 4.8%.

POSCO reduced operating cost by 680.4 billion won for January-June 2010, 59% for the yearly cost cut target in 2010, by utilization of low price raw materials though iron ore and coal prices jumped up.

For a full year of 2010, the firm estimates net sales at 33.5 trillion won with operating profit at 5.6 trillion won. The annual investment is planned at 10.4 trillion won for refinement of no.4 blast furnace in Pohang iron works, construction of a plate plant in Kang Yang iron works, M&A and raw material development.