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.