POSCO's Q2 profit slumps 84.3% as COVID-19 hits steel demand
2020-07-22 08:48:46 [Print]
South Korean steelmaker POSCO reported a drop of 84.3% in second-quarter operating profit, as the COVID-19 pandemic dented steel demand, the company said on Tuesday.
POSCO said it expected steel demand to recover from the third quarter but revised down its 2020 sales outlook to 55.4 trillion won (36.48 billion pounds) from its April forecast of 57.5 trillion.
The steelmaker said it recorded a consolidated operating profit of 168 billion won in the April-June quarter, versus 1.1 trillion a year earlier.
POSCO's second-quarter revenue fell 15.9% to 13.7 trillion won, while net profit dropped 84.6% to 105 billion.
In the midst of the pandemic, steel demand from automakers and construction companies, among others, has weakened during lockdowns to limit spread of the virus.
Global steel demand is expected to fall 6.4% this year as the pandemic has slowed industrial activity, the World Steel Association said last month.
POSCO said it expected steel demand to recover from the third quarter but revised down its 2020 sales outlook to 55.4 trillion won (36.48 billion pounds) from its April forecast of 57.5 trillion.
The steelmaker said it recorded a consolidated operating profit of 168 billion won in the April-June quarter, versus 1.1 trillion a year earlier.
POSCO's second-quarter revenue fell 15.9% to 13.7 trillion won, while net profit dropped 84.6% to 105 billion.
In the midst of the pandemic, steel demand from automakers and construction companies, among others, has weakened during lockdowns to limit spread of the virus.
Global steel demand is expected to fall 6.4% this year as the pandemic has slowed industrial activity, the World Steel Association said last month.
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