As stated on October 21 by major South Korean steel producer Pohang Iron and Steel Co. (POSCO), its net profit in the third quarter this year saw a 78 percent year-on-year decline to $204.8 million.
Meanwhile, POSCO's third quarter operating profit slumped to $958.1 million, compared to $1.31185 billion in the second quarter this year and $905.4 million in the third quarter of last year. Analysts had earlier anticipated that POSCO's operating profit in the third quarter this year would reach $1.0108 billion. The significant quarter-on-quarter decrease in POSCO's operating profit was due to sharply increased raw material costs and weakened demand for steel used in cars and buildings weakened, and was also influenced by the strengthening of the domestic currency.