POSCO Posts Highest Operating Profit in 10 Years

Steelmaker POSCO achieved the highest operating profit in 10 years during the first quarter of this year.

Sales in the first three months of this year totaled W15.99 trillion, up 10 percent on-year, while operating profit soared 120.1 percent to W1.55 trillion (US$1=W1,126).

The previous quarterly operating profit record was set in the second quarter of 2011 with W1.75 trillion.

The stellar earnings were due to explosive demand for steel products following a recovery in sales of cars and electronics as well as more infrastructure projects around the world.

The World Steel Association estimates global steel demand this year will rise to 1.79 billion tons, the highest in 20 years.

Chinese steelmakers also cut down production due to stricter environmental regulations. POSCO made more money by raising prices to reflect the increased prices of iron ore and coal. The price of hot-rolled steel sheets rose from W800,000 per ton early this year to W1 million recently, the highest since 2008.