Posco Q4 Profit Misses Target On Pricey Iron Ore
Posco, the world's third largest steelmaker, reported a nearly 60 per cent fall in quarterly operating profit, missing its own estimate, amid tepid global demand for steel and high raw material costs.
The South Korean company on Thursday said its October-December operating profit was 653 billion won ($588.8 million), well below its revised target of around 800 billion won in October and a consensus forecast of 956 billion won from Thomson Reuters I/B/E/S.
In October, Posco cut its 2010 operating profit target by 7 per cent, suggesting its fourth-quarter profit would slide to around 800 billion won, as it struggles with weak demand and overcapacity in the industry.
The fourth-quarter profit is down from 1.59 trillion won a year ago and from 1.1 trillion won the previous quarter.
Shares in Posco, which trails ArcelorMittal and China's Baosteel, slumped 21 per cent last year, underperforming the broader market's 22 per cent gain.
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