April 26, 2024

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[THE INVESTOR] POSCO, South Korea’s top steelmaker, said on Jan. 25 that it returned to the black in 2016 from a year earlier.

The company stated that it logged a net profit of 1.05 trillion won (US$901 million) on a consolidated basis in 2016, compared to the 96.2 billion won loss recorded the previous year.

Operating income gained 18 percent on-year to reach 2.84 trillion won in 2016, while sales dipped 8.8 percent to 53.08 trillion won over the cited period. The steelmaker attributed its better-than-expected earnings to improved bottom lines at its overseas units, increased sales of high-priced products and cost-cutting moves.

POSCO alone logged an operating income of 2.64 trillion won last year on sales of 24.32 trillion won, which represent a 17.7-percent on-year spike and a 5 percent fall, respectively. Its operating income to sales ratio rose to 10.8 percent in 2016, posting a double-digit rate for the first time in five years.

POSCO said its revenue from sales of high-priced steel products rose to a record 15.97 million tons in 2016 as it posted 3.26 million tons increase from the previous year. The portion of such products accounted for 47.3 percent of its overall sales.

POSCO said it aims to log 54.8 trillion won in sales on a consolidated basis and 25.6 trillion won on a standalone basis in 2017. 

(theinvestor@heraldcorp.com)