Steel giant Posco's Q3 profit triples following cost cuts & currency gains
October 24, 2012, 12:30 am TWN
SEOUL -- South Korean steel giant Posco said Tuesday its third-quarter net profit more than tripled from a year earlier on aggressive cost-cutting efforts and currency gains.
Consolidated net profit in the July-September period rose to 723 billion won (US$656 million) from 229 billion won a year earlier, the company said in a statement.
But sales fell 7.2 percent year-on-year to 15.74 trillion won and operating profit dropped 17.6 percent to 1.06 trillion won.
The world's third-largest steelmaker by output has streamlined its business lineup and boosted sales of high-end products to cope with oversupply of steel and slowing demand.
Posco said the won's appreciation also helped drive down its dollar-denominated debts in the period. The South Korean unit, which hit a 13-month high against the greenback on Tuesday, has been boosted by foreign inflows as dealers look to Asia for better investment returns.