SEOUL, Jan. 30 (Korea Bizwire) — POSCO, South Korea’s biggest steelmaker, said Wednesday that its net profit dropped 36 percent last year from a year earlier on a one-off valuation loss, reduced gains from asset sales and higher taxation.
Net profit reached 1.89 trillion won (US$1.69 billion) on a consolidated basis, compared with a net profit of 2.97 trillion won a year earlier, the company said in a regulatory filing.
Operating income spiked 19.9 percent on-year to reach 5.54 trillion won, and sales rose 7.1 percent to 64.98 trillion won over the cited period.
“POSCO and its affiliates racked up better than expected earnings, and the financial status also improved with debt payment,” the company said.
On a standalone basis, the steelmaker posted a net profit of 1.07 trillion won on sales of 30.66 trillion won. Its operating income also amounted to 3.8 trillion won.
POSCO’s operating income from its mainstay steel business increased by nearly 1 trillion won to 4.51 trillion won, and that from its non-steel business also stayed over 1 trillion won.
The steelmaker said it aims to log sales of 66.3 trillion won in 2019 and plans to spend 6.1 trillion won this year, sharply up from last year’s 2.7 trillion won.
The company said its target is to produce 37.5 million tons of crude steel this year and sell 35.7 million tons of steel products.