SEOUL -- Posco's operating profit soared 44% to 979.1 billion won ($869 million) in the April-June quarter, the major South Korean steelmaker said Thursday.
Recovering steel demand in advanced economies and a reduction in output by Chinese steel producers helped lift the South Korean company's earnings.
Sales grew 16% to 14.94 trillion won thanks to the solid performance of its core steelmaking business. Additionally, its energy segment, which operates gas-fired power plants and other facilities, returned to profit, as did its construction business. But expansion of a blast furnace at its Pohang steelworks caused the company to undershoot January-March sales and operating profit.
The steelmaker expects raw materials prices to decline in the July-September quarter, propelling a further earnings recovery.
Given a better-than-projected market recovery, Posco now expects sales to jump 12% to 59.3 trillion won for the full year ending December, up from its previous guidance calling for a 3% rise to 54.8 trillion won.