Hit by declining steel prices, Posco’s earnings drop 11.6%Posco, Korea’s leading steelmaker, said yesterday that its earnings in 2011 dropped 11.6 percent from a year earlier due mainly to low steel prices and increased costs of raw materials.
Net profit reached 3.7 trillion won ($3.31 billion) on a consolidated basis last year, compared with a profit of 4.19 trillion won a year earlier, the company said in a regulatory filing.
Sales rose 44 percent on-year to 68.9 trillion won during the period, while operating income slipped 0.3 percent to 5.41 trillion won, it said.
The figures encompass results from Posco’s domestic and overseas affiliates.
Costs of raw materials, including iron ore and coal, increased nearly 46 percent last year, but the increased costs were not fully reflected in steel prices, the steelmaker said.
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