Posted on 24 Apr 2012
Posco, the largest steelmaker in South Korea said that South Korean steel industry is suffering from the deeper trouble than previously forecasted.
Posco is trying to pursue austerity measures and reduce investment to ease the trouble in 2012.
According to the statistics, the total amount in sales was 9.46 won trillion in the Q1, 6% lower than that in the same period last year, and the operating profit was 422 won billion, falling by 39% year on year.
Mr. Park Ki hong, the executive director of Posco said that the main reason to make the obvious drop in sales and operating profit was the supplies of the raw materials were under the higher price due to the last year’s contract.
Although the steelmaker’s quarterly operating profit was about 1 trillion won as usual, the earning was nearly 50% less compared with last year due to the weak global demand and higher prices on raw materials under the Europe’s debit crisis.
