OREANDA-NEWS. February 13, 2013. POSCO held the CEO Forum at the Korea Exchange International Conference Room in Yeouido, Seoul, announcing 2012 consolidated sales figures of 63,604 billion KRW and operating profit of 3,653 billion KRW, reported the press-centre of POSCO.

Last year, through strengthened marketing activities and developing technology and new demand, POSCO achieved the highest amount of steel production and sales each at 37.99 million tons and 35.05 million tons respectively. Due to unprecedented deteriorating global market and oversupply, and product prices dropped by approximately 100,000 KRW accordingly, independent sales and operating profit each marked 35,665 trillion KRW and 2,790 billion KRW respectively.

However, POSCO by expanding sales of high value added products and reducing costs outperformed other global steel companies with the best return on sales at 7.8%, and successfully made mid to long-term investments for future growth.

Sales of automobile steel plates and steel materials for energy, leading high value added products, increased 3.4% and 9.3% year on year, and the percentage of world first world best products also increased from 16.9% to 17.1%. Sales to core clients with mass demand also increased by 2.5% from 5.55 million tons to 5.69 million tons, securing a mid to long-term sales base. 580.6 billion KRW was executed for R&D investments, 2.6% increase from the previous year, continuously investing in mid to long term new steel products and technologies.

A total of 1.3 trillion KRW in costs were reduced by reducing costs in material blending and optimizing facilities and materials, and debts were repaid strengthening financial soundness. Debt ratio was reduced by 6.6% year on year to 33.6%, and the debt to equity ratio increased by 3.6% year on year to 74.9%.

A total of 128 new products were developed, an increase of 46 products in the total number of products newly developed yearly, and automobile steel plates were developed at the best quality satisfying all standards required by all Japanese automobile manufacturers.

With the strong growth of the steel division alongside the energy and chemicals •materials divisions starting to see results, sales and operating profit both increased with the energy division marking 2,881 billion KRW in sales and 2,670 billion KRW in operating profits and the chemicals•materials division marking 3,568 billion KRW in sales and 1,660 billion KRW in operating profit. The E&C division also saw an increase in figures with sales of 9,726 billion KRW and operating profit of 3,390 billion KRW.

CEO Chung Joonyang said, ``This year`s global competition for survival is expected to be more intense than before. `Value management` will be realized by securing exclusive technology competitiveness and through innovation management, while profitability and growth potential will be stably secured to change this crisis into an opportunity.``

Meanwhile, POSCO announced that its sales goals this year are 66 trillion KRW consolidated, and 32 trillion KRW independently. Steel production and product sales goals are 37 million tons and 34 million tons respectively.