POSCO profit increases on recovery in demand and prices
2011-07-26 10:22:36 [Print]
POSCO has reported a 23% increase in second quarter profit as a recovery in demand allowed it to increase prices. Group net income rose to KRW 1.37 trillion in the three months ended June 30th 2011 from KRW 1.12 trillion a year earlier. Sales gained 58% to KRW 17.05 trillion.
The steelmaker aims to produce 37.1 million tonnes of crude steel this year and post KRW 40 trillion of sales, unchanged from the targets announced in April. POSCO raised the prices of benchmark hot rolled steel plates by about 18% in April 2011.
Mr Kim Kang Oh, an analyst at Hanwha Securities Co in Seoul, said that "Second quarter results may be the best for this year on increased values of inventories."
Group sales are expected to rise to KRW 66.4 trillion in 2011 from KRW 47.9 trillion in 2010. POSCO plans to invest overall KRW 9.7 trillion in 2011.
POSCO said that "To achieve the long-term growth momentum, POSCO will go ahead with investments in steel sectors as planned."
POSCO paid miners 25% more for iron ore and about 47% more for coking coal for the quarter, compared with the previous three months. The company increased steel prices by KRW 160,000 per tonne on April 22nd 2011, indicating an 18% gain in hot rolled steel plates and a 16% increase in cold rolled steel plates.
The steelmaker aims to produce 37.1 million tonnes of crude steel this year and post KRW 40 trillion of sales, unchanged from the targets announced in April. POSCO raised the prices of benchmark hot rolled steel plates by about 18% in April 2011.
Mr Kim Kang Oh, an analyst at Hanwha Securities Co in Seoul, said that "Second quarter results may be the best for this year on increased values of inventories."
Group sales are expected to rise to KRW 66.4 trillion in 2011 from KRW 47.9 trillion in 2010. POSCO plans to invest overall KRW 9.7 trillion in 2011.
POSCO said that "To achieve the long-term growth momentum, POSCO will go ahead with investments in steel sectors as planned."
POSCO paid miners 25% more for iron ore and about 47% more for coking coal for the quarter, compared with the previous three months. The company increased steel prices by KRW 160,000 per tonne on April 22nd 2011, indicating an 18% gain in hot rolled steel plates and a 16% increase in cold rolled steel plates.
