Sunday, July 24, 2011

Posco Q2 operating profit down on high costs (AFP)

SEOUL (AFP) ? South Korea's main steelmakeer Posco said Friday that second-quarter operating profit fell 11 percent from a year earlier due to higher input costs, despite a rise in steel product prices.

But the world's third largest steelmaker in terms of output saw its net profit rise 23 percent year-on-year because of shareholding gains from affiliates.

The April-June operating profit fell to 1.746 trillion won ($1.7 billion) from 1.966 trillion a year earlier.

Net profit rose to 1.372 trillion won from 1.119 trillion, while sales jumped 58 percent to 17.047 trillion won from 10.788 trillion.

Posco raised the price of shipbuilding plates, hot-rolled and cold-rolled coils in April to pass on high raw material costs.

The company produced 9.28 million tonnes of steel products in the second quarter, up 11 percent from a year earlier, and sold 8.66 million tonnes, also up 11 percent.

In April the company raised its annual cost-cutting target to one trillion won from the previous 800 billion. It achieved cost reductions totalling 695.3 billion won in the first six months.

-- Dow Jones Newswires contributed to this report --

Source: http://us.rd.yahoo.com/dailynews/rss/asia/*http%3A//news.yahoo.com/s/afp/20110722/bs_afp/skoreasteelposcocompanyearnings

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