Posco profits on stronger Won

Posco profits on stronger Won

The world's fifth largest steel maker, South Korean's POSCO, will release its Q1 2005 figures tomorrow. The company is expected to disclose a 75% year-on-year increase in its quarterly net income, reaching Won 1.26 trillion ($1.2 billion). The operating profit is expected to increase 68% to Won 1.7 trillion, and sales are expected to rise 32% to Won 5.65 trillion. The increase is partly due to the Won strengthening 13% against the US dollar in the last six months. This meant the increase in iron prices had less of an effect on POSCO. Posco managed to save approximately $70 million from its raw material costs in the first quarter thanks to the stronger Won. The company also increased its steel prices in the domestic market by 70% from February 2004. The company's latest domestic prices effective from April 1 saw Won 45'000 - 65'000 per ton (6-11%) increases. Hot-rolled coil prices rose 10.2% to Won 595'000 per ton. Plates for shipbuilding rose 7.5% to Won 645'000, and cold rolled plate prices went up 8.6% to Won 695'000 per ton.