OREANDA-NEWS. August 01, 2012. POSCO held its Q2 IR Meeting at the International Conference Room at Korea Exchange in Yeouido, Seoul, announcing consolidated sales of 16.488 trillion KRW and consolidated operating profits of 1.065 trillion KRW, reported the press-centre of POSCO. 

POSCO alone, its sales and operating profits marked 9.223 trillion KRW and 1.057 trillion KRW, respectively. POSCO`s operating profit was improved compared to the previous quarter due to increased sales of high value added cold-rolled products centered around automobile steel plates, increase of export price and introductions of low-cost material as well as efforts in reducing costs.

The leading high value added products such as automobile and appliances for transportation and home increased in sales by 2.6% and 22.2%, respectively. In the case of automobile steel plates, 1.11 million tons were exported; a 2.9% increase from the previous quarter. Thanks to such increase in export of high value added products, operating profit rates is increased significantly compared to the previous quarter.

POSCO which has set goals to reduce costs by 1.0709 trillion KRW this year achieved cost reduction of 612.9 billion KRW in the first half, 57% of the annual goal. Most cost reductions in the first half were 408.4 billion KRW in material costs, 74.3 billion KRW in maintenance costs, and 63.2 billion KRW in energy.

In the second quarter, financial stability was strengthened to a greater level as corporate bonds were paid back, which results in debt reduction. The debt-to-asset ratio was 37.5% in the second quarter, a 2.7% reduction from the last year, while the debt-to-equity ratio was 72.7%, a 1.4% increase compared to last year.

While POSCO prospects that steel demand will increase in the third quarter compared to the same period last year, the Company will drive tight management maximally to prepare against the uncertainties in external and internal management environments which are expected to continue.

The Company will focus on expanding sales of World First World Best product and increase export ratios of high value added products, and carry out total solution marketing activities to provide client customized services in all processes. In addition, the Company plans to strengthen real-time & paradox management through efforts to reduce costs, increase global technological leadership, and maximize synergy between affiliates.