By Song Jung-a
Posco, Asia’s biggest steelmaker by market value, yesterday gave an upbeat earnings guidance, dispelling investors’ concerns about slowing steel demand and higher raw material costs.
The South Korean steelmaker said it expected third-quarter earnings to be better than expected and full-year profit to exceed its target, helped by costcutting and price increases.
Posco reported record earnings in the first half and has revised up its profit forecast for this year to reflect a series of price increases. In July, Posco raised its operating profit target for the year by 19 per cent to Won5,700bn ($5bn) and sales target by 11 per cent to Won31,000bn.
“We have cut costs substantially through our superior blending technology, which allows us to use cheaper raw materials,” said Posco.
Song Jung-a, Seoul
Copyright The Financial Times Limited 2008