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SEOUL, Jan. 24 (Aju News) -- South Korean steel giant Posco warned clients at home and abroad of a possible increase in steel prices Wednesday as it reported good corporate earnings following a painful three-year restructuring program.
At a conference call, Posco said it would raise steel prices in the first quarter of this year at home, citing a gradual business recovery in shipbuilding. The company said it was in price negotiations with clients in Southeast Asia and North America.
Posco said its consolidated net profit last year rose to 2.97 trillion won ($2.78 billion) from 1.048 trillion won a year earlier. Operating profit soared 63 percent on-year to 4.62 trillion won and sales rose 14 percent to 60.65 trillion won.
The company attributed its gains to brisk performances at its non-steel business and steel subsidiaries abroad. As a result, Posco's debt ratio dropped to 66.5 percent.
Posco's joint venture in Indonesia turned a profit last year for the first time since it was established four years ago. Posco owns 70 percent of the joint venture, PT Krakatau Posco, capable of producing three million tons of steel every year.
For three years, Posco has sold non-core assets and reorganized its workforce and businesses to remain competitive amid a prolonged slowdown caused by oversupply and weak demand that have driven many steel makers to the corner. This year, the company promised to invest 4.2 trillion won in new facilities in steel and non-steel businesses with this year's sales target set at 61.9 trillion won.
reporter
Lim Chang-won
cwlim34@ajunews.com
