POSCO surpassed 1 trillion won in operating profit for the eighth consecutive quarter on a consolidated basis.
In a corporate briefing held through a conference call on July 23, POSCO said it posted 16.3 trillion won in consolidated sales, 1.68 trillion won in operating profit and 681.4 billion won in net profit in the second quarter.
The steel sector's operating profit fell on-quarter, but POSCO International's performance improvement in the global infrastructure sector, including increased sales of gas fields in Myanmar and brisk trade, led to an operating profit ratio of 6.5 percent for the eighth consecutive quarter.
It recorded 7.4 trillion won in sales and 724.3 billion won in operating profit. Net profit is 545.4 billion won.
Sales prices rose due to the won's depreciation, but operating profit fell by 13.0 percent on-quarter due to a fall in sales and raw materials price caused by repair of product lines.
However, it has kept its sales ratio of WTP (World Top Premium), which is a high-value product, at the previous quarter level and minimized reduction of its operating profit. The operating profit ratio fell by 1.0 percentage point on-quarter to 9.7 percent.
Financial soundness continues to strengthen. The consolidated-based debt ratio hit a record low of 65.0 percent since 2010 due to continued reductions in borrowing and unpaid corporate tax payments.
On the steel market in the second half, POSCO predicted that the growth in global steel demand will slow down, although demand for steel in China will improve somewhat due to the effects of China's economic stimulus measures and the announcement of additional support policies.
Meanwhile, POSCO adjusted its annual product sales target to 36.2 million tons from 35.7 million tons and slightly raised its consolidated and separate-based sales to 66.8 trillion won and 31.1 trillion won, respectively.