POSCO reached historic levels in first quarter earnings
According to data released by South Korean giant steel maker POSCO last week, company's sales, operating profit and net profit results for the first quarter hit its highest ever levels. POSCO posted a net profit of Won 468.7 billion ($385.7 million) with a 146% increase compared to same period previous year, whereas its operating profit grew up by 179% and reached to Won 773.8 billion ($637 million). Last year first quarter figure was Won 277.1 billion ($228 million). Sales increased by 22.6% from Won 2.659 trillion to Won 3.261 trillion. Company attributed these improvements seen in Q1 results, mainly to the pick up in foreign steel markets; continously rising international steel prices from the second quarter of 2002; and decline in POSCO's prices due to reduced product costs as a result of new technologies used in
production process.
Furthermore, it is also declared that POSCO is planning to make further
investments in
China owing to the fact that the fast developing Chinese economy keeps steel demand increasing as well as being a substantial
trading partner.
China, supplying 21.7% of POSCO's coal requirements, imported 26.4% of the company's total exports. Corresppondingly, with the abovecited purpose, a Chinese headquarter was founded in March 2002. This headquarter will also contribute to the operation of subsidiaries located in
China together with the development of resources within the country.