POSCO posts lower profit on weak steel prices

South Korean steel giant POSCO's net profit dropped 47.9 percent in the first quarter of 2006 due to the weaker steel prices and lower sales. POSCO reported that its net profit amounted to Won 681.4 billion (around $713.1 million), but it surpassed market expectations of Won 570 billion. Sales declined 17.5 percent year on year to Won 4.66 trillion (around $4.88 billion) as POSCO cut the prices of major products 4-17 percent in January in an effort to compete with cheaper Chinese imports.