Posco lost 36% of profit in 2012

The largest South Korean metallurgical company Posco reports that its consolidated profit in 2012 fell by 36%- up to $ 2 billion 170 million compared to 2011 amid the weakening of the demand for metal distribution and growth in production costs.

Sales in 2012 fell by 7.7%, and Posco operating profit decreased by 33.2%.

In the fourth quarter of 2012, the operating profit of the metallurgical company collapsed by 51%, and sales of the metal rolling decreased by 20%.

Prices for metal products were reduced on average in 2012 by 15% to 700 -750 dollars/ton.

Posco analysts see no reason for the serious growth of domestic demand in South Korea in 2013, but count on the growth of steel consumption in China that can raise global demand by 3%.

In 2013, the largest metallurgical company South Korea will continue to reduce steel production by 1 - 2%, and will pay more attention to the modernization of existing production facilities. Posco plans to invest in 2013 about 3 billion 800 million dollars in innovative projects.

“In 2013, the competition in the global markets of steel and the metal rolling will be even more rigid, even the most rigid in the history of the market. Given the expectations of moderate restoration of the global economy when imposing numerous uncertainty factors, we cannot assume any improvements in steel markets except Chinese. Posco will extract lessons from the crisis and direct all its attention to the growth of profitability of the production of metal rolling, ”said Posco Chairman Chun Joon Yang.