January 13, 2011 / 12:22 IST
POSCO, the world's No 3 steelmaker, reported a nearly 60% 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 (USD 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%, 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% last year, underperforming the broader market's 22% gain. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
