South Korean steelmaker Posco, which last year swung to its first ever full-year loss, reported better than expected first-quarter results.
On a consolidated basis, sales slid to 12.5 trillion won in the January-March period while operating profit gained 319.3 billion won to 659.8 billion won. The company posted 352.5 billion won in net profit. Its operating profit margin increased 2.9 percentage points to 5.3 percent, the company said in a regulatory filing on April 21.
The weak performance of Posco’s construction business was offset by the strong performance of its steel and trading business (e.g. Posco Daewoo and Posco China), according to Posco.
Zhangjiagang Pohang Stainless Steel, a China-based stainless steel subsidiary of Posco, and Posco Mexico swing back into the black; PT Krakatau-Posco and Posco SS-Vina posted smaller operating losses.
