Cost Cut Improves POSCO’s Profit in 3Q

POSCO posted 1.142 trillion won of non-consolidated net profit in July-September, which decreased by 6.2% from same period last year and increased by 165% from April-June, announced on Wednesday. The firm improved the profitability due to 288.9 billion won of cost cut during the quarter along with higher export price and lower raw materials cost. The firm revised the full year outlook upward to 3.2 trillion yen of non-consolidated operating profit, which is 23% higher than outlook in July and 51.1% lower than 2008.

POSCO has been reducing the cost by utilizing low-priced material and byproducts under severe business condition since the chairman Joon-Yang Chung took the office. The firm has reduced 1.127 trillion won in January-September, which is 87% of 1.3 trillion won of yearly target.

POSCO revised the full year non-consolidated revenue outlook upward by 5% to 27.1 billion won from the outlook in July while the revenue is still 12% less than the level in 2008. The firm also revised the full year non-consolidated crude steel output to 29.5 million tonnes, which is 1% lower than outlook in July and 11% less than the production in 2008.