Posco net surges 88 percent on increase in steel prices

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Posco net surges 88 percent on increase in steel prices

Posco, the nation’s No.1 steelmaker, posted 88 percent increase year-on-year net profit in the second quarter, the company said Thursday.

Net profit for the second quarter of the year was 220.5 billion won ($193.8 million) compared to 117.4 billion won a year earlier, largely due to a decline in Chinese output which led to a rise in steel prices.

Operating profit increased 2.8 percent compared to the last quarter.

During a press briefing, the steelmaker said its engineering and construction business along with energy businesses have been weak compared to the last quarter, however improved outcomes through steel and material sales lifted profit.

Posco Engineering & Construction posted 170.6 billion won in operating losses while Posco Energy lost 8.7 billion won. The steel business made up for the losses with a 733.7 billion won quarterly profit.

“We will complete restructuring our construction sector this year to improve performances for next year,” the company spokesman said during the briefing.

At one time, Posco had more than 70 affiliated companies in diverse business sectors. The company has been restructuring for leaner business management since 2014. It has reformed 45 affiliates since 2014 thus far and plans to reorganize 28 more affiliates by the latter half of this year.

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