POSCO logs weaker-than-expected Q4 net on global slump

SEOUL, Jan. 15 (Yonhap) -- POSCO, the world's fourth-largest steelmaker, said
Thursday that its fourth-quarter earnings edged up on higher prices and reduced
costs, but fell short of market expectations due to the global economic crisis.
Net profit reached 721 billion won (US$521 million) in the October-December
period, up 1.1 percent from 713 billion won a year earlier but down 41 percent
from the previous quarter, the company said in a regulatory filing. A median
market estimate was 1 trillion won.
Sales soared 53 percent to 8.31 trillion won in the cited period with operating
income jumping 60 percent to 1.39 trillion won, according to the company.
Shares of POSCO closed at 359,000 won on the Seoul bourse, a drop of 5.28
percent. The fourth-quarter earnings were released after the market closed.
The weaker-than-expected bottom line came amid concerns that the global steel
industry is facing a sharp drop in demand as automakers, electronics companies
and shipbuilders are faced with financial difficulties resulting from the
worldwide crisis.
POSCO said earlier this week that it may have to extend its first-ever output cut
through the current quarter as a due to reduced demand from automakers and
shipbuilders.
The steelmaker announced the first-ever output cut in its 40-year history last
month, slicing steel production by 200,000 tons in December and another 370,000
tons in January.
POSCO CEO Lee Ku-taek offered his resignation earlier in the day to make way for
a new leadership.
sam@yna.co.kr
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