POSCO Q4 net jumps 77 pct on lower costs, rising demand

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SEOUL, Jan. 14 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Thursday
that its earnings increased 77 percent from a year earlier in the fourth quarter
of last year due to decreased costs and rising demand.
Net profit reached 1.28 trillion won (US$1.1 billion) in the October-December
period, compared with 721 billion won a year earlier, the company said in a
regulatory filing.
Sales, however, fell 12 percent to 7.29 trillion won over the cited period, and
operating income rose 14 percent to 1.6 trillion won.
Shares of POSCO closed at 592,000 won on the Seoul bourse, down 0.7 percent. The
earnings report was released after the market closed.
Accumulated profit reached 3.17 trillion won last year, down 29 percent. Sales
grew 12 percent to 26.95 trillion won, while operating income dropped 52 percent
to 3.15 trillion won.
The company said its recovery was faster than other firms and that it was able to
weather the economic crisis by cutting output by only 20 percent in the first
half, while global rivals had to make cuts of more than 40 percent.
"POSCO will continue to report a recovery in its earnings as it is set to raise
steel prices and will benefit from falling costs of raw materials," said Chung
Ji-yun, an analyst at HI Investment & Securities.
The steelmaker's crude steel production reached 29.5 million tons last year,
compared with 33.1 million tons a year earlier.
POSCO reduced its production by 20 percent in the first half due to weak demand
from automakers and shipbuilders.
Its annual production target was set at 34.4 million tons this year, up 16.6
percent from last year, while annual sales projections increased 9.3 percent to
29.5 trillion won.
The company said it plans to spend 9.3 trillion won this year on facilities.
sam@yna.co.kr
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