POSCO profit up 20 percent

Seoul
South Korean steelmaker POSCO said on Tuesday its quarterly operating profit rose 20 percent, beating estimates, as lower iron ore input costs more than offset the impact of weaker steel prices.
POSCO, the world’s sixth-biggest steelmaker, said operating profit in the January to March quarter was 622 billion won ($574 million) on a parent-only basis, above a consensus forecast of 602 billion won. The closely watched parent-only measure refers to earnings from steel business, and excludes profit from affiliates. That compared with 518 billion won in operating profit in the same period a year earlier, and 632 billion won in the October-December quarter. In a regulatory filing, POSCO said revenue fell 8 percent in the quarter to 6.79 trillion won.
Prices of iron ore, a key ingredient in steelmaking, slid in the first quarter amid a supply glut and soft Chinese demand.