POSCO to post low profit on weak prices

POSCO to post low profit on weak prices

POSCO, the world's fifth-largest steel maker, is expected to report its smallest quarterly profit in two years because of decreasing prices, and earnings are expected to weaken further in 2006. POSCO is forecasted to report net profit of about Won 575.5 billion ($588.8 million) for the three months to December 31, 2005. This is a 51 percent drop year on year and a 46 per cent fall from the previous quarter. Sales are expected to have fallen 3.4 percent to Won 5.42 trillion from Won 5.61 trillion a year earlier. POSCO's annual net profit is expected to amount to Won 3.1 trillion ($3.12 billion) in 2006 on sales of Won 20.48 trillion in 2006.