POSCO Enjoys 2.5 Times Higher Net Profit for January-March

POSCO of South Korea announced on Friday its non-consolidated net profit increased by 2.5 times to 927 billion won for January-March 2011 compared with October-December 2010. The firm aims even better business performance for April-June 2011 by price hike of steel products and cost reduction efforts. The firm also revised up its non-consolidated crude steel output plan for 2011 by 10% to 37.1 million tonnes per year.

POSCO’s operating profit decreased by 36.1% year-to-year for January-March 2011. Purchasing cost of iron ore and coal jumped up though crude steel output increased by 8.7% and the steel sales volume increased by 9.6%.

The sales volume of “the world’s top and first steel products” increased to 1.26 million tonnes for January-March 2011 from 960,000 tonnes in the same period of 2010. On the other hand, the firm achieved cost reduction by 317.7 billion won. In 2011, the firm projects total 1 trillion won cost cut, increasing from previously planned 800 billion won.

POSCO’s latest consolidated sales target is 67.8 trillion won in 2011, increasing by 41.5% from 2010 and by 1.8 trillion won from the previous plan announced at the beginning of this year. The non-consolidated sales plan was revised up to 40 trillion won, higher by 41.5% than in 2010 and by 4 trillion won than the previous plan. The sales volume plan was also revised up to 34.7 million tonnes, increasing by 10.3% year-to-year and by 700,000 tonnes from the previous plan.