South Korea’s largest steel company Posco reduced net profit in 1st quarter at 41.1% of 705,3 billion won ($570,5 million) compared with 1.2 trillion won over the same period last year. As noted in the company, Posco has reduced its consolidated operating profit in connection with the fall in world demand for steel products due to pandemic coronavirus infection COVID-19.
Analysts polled Refinitiv, on average, predicted profit at the level of 578 billion won.
Posco’s net profit fell to 44,2% to 434,7 billion won ($352 million). Revenue decreased by 9.2 percent to 14.5 trillion won.
Manufacturing companies in January-March decreased by 3.6% to 9.07 million tons, sales by 5.3% to 8.72 million tonnes.
Posco said that the difficult situation in the steel industry will continue in the near future due to low steel product prices and weakening demand especially from the automotive and construction industries.
The company has lowered its forecast of production of steel products in 2020 of 7.1% to 34.1 million tonnes, compared to the previously planned 36.7 million tons and sales by 7.4% to 32.4 million tons from 35 million tons.
In addition, Posco has lowered expectations for revenue for the current year to 57.5 trillion won (us$46,5 billion) with the anticipated in January of 63.4 trillion won.
Stock quotes Posco, which ranks among the world’s leading steel companies, with the beginning of the year fell by more than 26%.
Source : https://thetimeshub.in/the-largest-steel-company-in-south-korea-