ID :
24478
Tue, 10/14/2008 - 18:36
Auther :
Shortlink :
http://m.oananews.org//node/24478
The shortlink copeid
POSCO's Q3 profit surges, but outlook tough
SEOUL, Oct. 14 (Yonhap) -- POSCO reported a nearly 40 percent jump in quarterly profit on Tuesday on a series of hikes in steel prices and cost-cutting measures, but forecast tough business conditions ahead as the U.S.-sparked financial crisis spreads.
The world's most profitable steelmaker says it expects business conditions to
worsen in the fourth quarter of this year.
"We are increasingly finding difficulty in doing steel business in the fourth
quarter," said POSCO Vice President Lee Dong-hee after the earnings release.
In a regulatory filing, POSCO said its third-quarter net profit jumped 39.9
percent from a year earlier to 1.21 trillion won (US$990 million).
Third-quarter operating profit soared 84.9 percent from a year earlier to 1.98
trillion won. Sales rose 67.6 percent to 8.81 trillion won.
The third-quarter results were boosted by "continued good shape in market
conditions and an increase in sales of value-added products such as stainless
steel," POSCO said in the filing.
Compared with a quarter earlier, however, net profit fell 17.4 percent, while
operating profit rose 5.3 percent.
Despite strong demand for steel, the South Korean steel mill is facing a tougher
challenge in the rising cost of raw materials and the Korean currency's weakness
against the U.S. dollar.
POSCO aims to post 6.6 trillion won in operating profits on sales of 31.9
trillion won for all of this year.
Earlier in the day, POSCO said it will make a solo bid to buy a controlling stake
in Daewoo Shipbuilding & Marine Engineering Co., the world's No. 3 shipyard,
after its partner GS Group pulled out of its consortium for the tender.
GS, an energy and retail conglomerate, said it withdrew the joint bid with POSCO
because the steelmaker placed an overly "aggressive" price.
Senior officials at POSCO, the world's No. 4 steelmaker, have expressed their
strong determination to acquire Daewoo Shipbuilding, saying the shipbuilder would
give it a competitive edge by supplying customized ship plates for
technologically complex vessels such as offshore drilling ships or gas plants.
"The POSCO management took careful consideration after the consortium with GS
failed," Lee said. "But, we will go ahead with our bid and are prepared to make a
solo bid."
POSCO is competing with Hyundai Heavy Industries Co., the world's largest
shipyard, and Hanwha Group, an insurance and chemicals conglomerate, to buy a
50.4 percent stake in Daewoo Shipbuilding, which some analysts say may fetch US$4
billion.
The world's most profitable steelmaker says it expects business conditions to
worsen in the fourth quarter of this year.
"We are increasingly finding difficulty in doing steel business in the fourth
quarter," said POSCO Vice President Lee Dong-hee after the earnings release.
In a regulatory filing, POSCO said its third-quarter net profit jumped 39.9
percent from a year earlier to 1.21 trillion won (US$990 million).
Third-quarter operating profit soared 84.9 percent from a year earlier to 1.98
trillion won. Sales rose 67.6 percent to 8.81 trillion won.
The third-quarter results were boosted by "continued good shape in market
conditions and an increase in sales of value-added products such as stainless
steel," POSCO said in the filing.
Compared with a quarter earlier, however, net profit fell 17.4 percent, while
operating profit rose 5.3 percent.
Despite strong demand for steel, the South Korean steel mill is facing a tougher
challenge in the rising cost of raw materials and the Korean currency's weakness
against the U.S. dollar.
POSCO aims to post 6.6 trillion won in operating profits on sales of 31.9
trillion won for all of this year.
Earlier in the day, POSCO said it will make a solo bid to buy a controlling stake
in Daewoo Shipbuilding & Marine Engineering Co., the world's No. 3 shipyard,
after its partner GS Group pulled out of its consortium for the tender.
GS, an energy and retail conglomerate, said it withdrew the joint bid with POSCO
because the steelmaker placed an overly "aggressive" price.
Senior officials at POSCO, the world's No. 4 steelmaker, have expressed their
strong determination to acquire Daewoo Shipbuilding, saying the shipbuilder would
give it a competitive edge by supplying customized ship plates for
technologically complex vessels such as offshore drilling ships or gas plants.
"The POSCO management took careful consideration after the consortium with GS
failed," Lee said. "But, we will go ahead with our bid and are prepared to make a
solo bid."
POSCO is competing with Hyundai Heavy Industries Co., the world's largest
shipyard, and Hanwha Group, an insurance and chemicals conglomerate, to buy a
50.4 percent stake in Daewoo Shipbuilding, which some analysts say may fetch US$4
billion.
