|End-of-day quote - 07/23|
Posco's Second-Quarter Net Profit Rose Sharply, Beating Consensus
|07/21/2021 | 10:48pm|
By Kwanwoo Jun
Posco's second-quarter net profit jumped sharply on higher steel prices amid solid demand, beating market expectations.
Net profit was 1.810 trillion won ($1.57 billion), up more than 18-fold from KRW100.00 billion a year earlier, the South Korean steelmaker said Thursday. That beat a FactSet-compiled consensus forecast of KRW1.315 trillion.
Revenue rose 33% to KRW18.290 trillion, while operating profit surged nearly 13-fold to KRW2.200 trillion, largely in line with the company's preliminary forecasts.
Posco attributed the above-consensus earnings results to brisk steel demand from the auto and shipbuilding industries, which drove up prices for hot-rolled steel and thick steel plates.
Prices for iron ore and other raw materials also rose, but selling prices for steel products surged at a faster-than-expected pace to offset higher commodity prices, Posco said.
Analysts said China's reduction of steel production could also drive up steel prices, helping Posco improve its earnings.
Posco raised its 2021 revenue forecast by 5.1% to KRW66.437 trillion to reflect the impact of the U.S. dollar rising against the won.
Posco shares traded 2.3% higher at KRW338,000 after releasing second-quarter results.
Write to Kwanwoo Jun at firstname.lastname@example.org
(END) Dow Jones Newswires