POSCO’s Non-consolidated Net Profit Expands by 32.5% to 4 Trillion Won in 2010

POSCO announced on Thursday the firm’s non-consolidated net profit increased by 32.5% to 4.203 trillion won (approximately 314 billion yen) in 2010 from 2009. Crude steel output increased by 14.2% to 33.7 million tonnes. Net sales increased by 20.9% to 32.582 trillion won. Operating profit expanded by 60.3% to 5.047 trillion won thanks to the sales increase of high value added steel products and cost down effect by more than 1 trillion won. Consolidated net sales totaled 60.521 trillion won with consolidated operating profit at 5.743 trillion won. In 2011, POSCO plans to increase non-consolidated crude steel production to 36 million tonnes and non-consolidated net sales to 3.6 trillion won. Consolidated net sales are projected at 66 trillion won.

POSCO expanded steel production and sales volume in 2010 by refinement of no.4 blast furnace in Pohang iron works and construction of a new plate mill in Gwangyang iron works.

The firm tries to reduce cost by 800 billion won in 2011 by improvement of productive processes and other efforts. Non-consolidated investment is planned at 7.3 trillion won and consolidated investment at 9.8 trillion won in 2011. The firm starts construction of an integrated steel plant in Indonesia, a cold rolling mill in India, a hot-dip zinc coated sheet plant in China and a stainless cold rolling mill in Turkey as well as increases 3 steel sheet processing bases in China and India.

Investment for research & development is planned at 620 billion won in 2011. The firm also expands investment to develop raw material sources.