SEOUL, Jul. 23 (Korea Bizwire) — POSCO, South Korea’s top steelmaker, said Tuesday that its second-quarter net profit increased mainly due to the robust performance of its affiliates.
Net profit reached 681.4 billion won (US$577 million) in the April-June period on a consolidated basis, up 17 percent from a profit of 580 billion won a year earlier, the company said in a regulatory filing.
Operating income reached 1.06 trillion won, down 14.7 percent from a year earlier, with sales increasing 1.5 percent on-year to 16.3 trillion won, the steelmaker said.
POSCO said its mainstay steelmaking business slumped, but gains from equity ties with its affiliates boosted its overall bottom line in the second quarter.
On a standalone basis, POSCO’s second-quarter net profit fell 6 percent on-year to reach 545.4 billion won. Sales declined 3 percent to 7.47 trillion won, while operating income dipped 12 percent to 724 billion won, compared to a year ago.
A weak won pushed up its steel prices, but a rise in prices of iron ore and other raw materials, as well as increased costs, dragged down its operating income.
POSCO sold 8.7 million tons of steel products, down 2.4 percent from a year ago.
The steelmaker said it has slightly raised its annual sales target for this year, from 35.7 million tons to 36.2 million tons.