POSCO anticipates 20% fall in H2 profits
South Korean steelmaker POSCO expects second half profits to fall 20 percent due to weaker steel prices coupled with strong iron ore and coal prices. Speaking at the annual International Iron and Steel Conference being held this year in Seoul, South Korea, POSCO President Kang Chang-oh said they expected net profit for all of 2005 to increase 12 percent to approximately $4.16 billion. This will be the lowest profit growth in four years. The company had made $2.46 billion profit in the first half of the year, up 19 percent year on year. The company needs to make profit of $1.7 billion in the second half in order to meet it yearly forecast. POSCO will announce third quarter results on October 11. Last month, the company announced its largest price cut in the last three years, lowering the prices of its 11 steel product types by 6-9 percent.