Posco Q3 net profit up more than 400 percent to ￦2.63 trillion

Steelmaker Posco reported Monday its net profit for the third quarter at 2.63 trillion won ($2.2 billion), up more than 400 percent from a year earlier.

Steelmaker Posco reported Monday its net profit for the third quarter at 2.63 trillion won ($2.2 billion), up more than 400 percent from a year earlier.

Posco, the world’s fifth-largest steelmaker by output, announced Monday it reported 20.64 trillion won in consolidated revenue in the third quarter, up 45 percent on year. Its consolidated operating profit was up 367 percent percent on year to 3.12 trillion won. They are preliminary figures updated from an initial announcement made on Oct. 13.

Posco subsidiaries include Posco International and Posco Chemical.

The company on Monday attributed the earnings to the favorable steel market globally, a rise in steel production and sales, and record earnings from its overseas subsidiary PT. Krakatau Posco in Indonesia.

The price of steel sold through the subsidiary rose 26 percent compared to the previous quarter, said Posco.

Steel prices remain high despite the rise in iron ore prices due to the global economic recovery and China cutting back on steel production, as the country aims to meet goals to curb carbon emissions, according to Byun Jong-man, an analyst at NH Investment & Securities.

Posco Energy also saw its operating profit increase due to the rise of the unit cost of electric power.

Posco International, a trading arm of Posco, also saw its preliminary revenue rise to 8.19 trillion won, up more than 80 percent on year. Operating profit was up 13 percent during the same period to 98 billion won.

Posco said it projects its annual consolidated revenue for this year to stand at 74.2 trillion won.

BYJINMIN-JI[jin.minji@joongang.co.kr]