Interesting...POSCO: net profit almost tripled in second quarter
(AFP)–11 hours ago
SEOUL — South Korea's top steelmaker POSCO said Tuesday itssecond-quarter net profit had almost tripled to 1.19 trillion won (981million dollars) due to price rises and growing demand as the worldeconomy improved.
The April-June figure compares with a netprofit of 431 billion won in the second quarter of 2009, the companysaid in a statement.
Sales jumped 25 percent to 7.93 trillion wonover the same period and operating profit surged to 1.84 trillion wonfrom 170 billion won.
POSCO said demand for steel at home andabroad remained strong thanks to the global economic recovery while itscost-cutting drive had helped off-set increased costs of raw materials.
"Thehikes in steel prices helped log better business results in the secondquarter," said the company, the world's fourth largest steelmaker. InApril POSCO increased prices for key products by as much as 25 percent.
Thecompany said it planned to increase spending on capital investment andacquisitions to 10.4 trillion won from the previously-set 9.3 trillionwon this year.
POSCO has been seeking to acquire a series ofcompanies at home and abroad in an effort to expand productioncapacity. In the past few years it has acquired Vietnam's AsiaStainless Corp and Taihan ST Corp in South Korea.
POSCO is alsobidding to take over South Korean trading firm Daewoo International inan attempt to improve its supply of raw materials.
This month the steelmaker announced it was buying a 70 percent stake in an Australian coal mine.
Copyright © 2010 AFP. All rights reserved.