POSCO achieves capex cuts in 2014

POSCO, South Korea's leading steelmaker, has cut its investment this year by more than 10 percent from its original plan to improve the company's financial position.

According to information provided by the steel company, it reduced capital expenditures in 2014 to 5.7 trillion. KRW with 6.5 trillion. KRW previously planned. This figure includes investments in its affiliates. POSCO plans to spend about $ 3 trillion on its branches. won this year, which is also lower than its earlier estimate of $ 3.7 trillion. KRW.

In 2010, POSCO invested a maximum amount of $ 11.2 trillion. KRW (won) on her capital spending, which fell to $ 8.1 trillion. KRW until 2011 and up to 7.2 trillion. KRW in 2012. Last year, its investments fell to 8.8 trillion. out. The cuts in capital expenditures for the world's fourth largest steelmaker are associated with declining profits, while debt is steadily rising.

The data showed that consolidated operating income in the first quarter declined 1.7 percent to 731 billion won and its sales also declined 6.6 percent to KRW 15,440 billion won compared to a year ago. POSCO's debt reached 40.58 trillion. KRW as of March, which indicates an increase of 5 percent since the end of last year, so the cost cut is very timely for the company to restore its previous profitability and eliminate debts in the face of a difficult situation on the global metal market.