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POSCO's Q1 net surges on prices, shareholding gains

All News 13:53 April 18, 2017

SEOUL, April 18 (Yonhap) -- POSCO, South Korea's largest steelmaker by sales, on Tuesday posted a net profit nearly three times higher than a year earlier in the first quarter helped by higher product prices and shareholding gains.

For the three months ended March 31, POSCO's net profit nearly tripled to 976.9 billion won (US$857 million) from 338.4 billion won a year earlier, the company said in a statement.

"Steel product prices increased by an average of 90,000 won in the first quarter, boosting the quarterly results. Shareholding gains from (the steelmaker's) affiliates also helped," a company spokesman said.

Operating profit also jumped to 1.365 trillion won from 659.8 billion won during the same period. Sales rose to 15.077 trillion won from 12.461 trillion won, it said.

After being hit hard by lower demand following the 2008 financial crisis, the Pohang-based steelmaker has sold noncore assets and cut costs as part of restructuring efforts.

POSCO plans to reduce the number of its affiliates to 32 by the end of this year from 49 in 2014 and continue to lower its debt-to-equity ratio to regain financial health. Its debt-to-equity ratio was 71 percent in the first quarter, the statement said.

POSCO's steel mill in Pohang, 374 km southeast of Seoul (Yonhap)


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