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Steelmaker POSCO reports highest-ever quarterly profit in Q3 -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : POSCO’s logo can be seen at its headquarters in Seoul (South Korea), July 20, 2016. REUTERS/Kim Hong-Ji

By Joyce Lee

SEOUL (Reuters) – South Korean steelmaker POSCO (NYSE) recorded its largest-ever quarterly operating loss in the third quarter. The surge in steel prices caused by lower Chinese supply was responsible.

POSCO, world’s sixth-largest producer of steel, announced on Monday that it had reported a consolidated operating loss of 3.1 trillion won (2.63 billion) for the quarter ended July-September. This was in line with its prediction earlier this month.

The company reported 667 billion won operating profit one year prior.

In the third quarter, revenue rose by 45% to 20.6 billion won

POSCO increased its target for 2021 revenue to 74.1 trillion won, from 66.4 billion won earlier. It did so because of tight steel supply expected to continue throughout the year.

China is the largest steel producer in the world. However, China’s September crude steel production fell to its lowest level since December 2018. This was due to environmental restrictions to lower carbon and smog emissions, as well as power shortages.

After the announcement of earnings, shares in POSCO rose 1.3% while those on the larger market fell 0.1%.

$1 = 1,177.2300 won

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