By Kwanwoo Jun
Posco (005490.SE) reported its second-quarter results on Tuesday. Here's what you need to know:
NET PROFIT: The South Korea-based steelmaker posted second-quarter net profit of 681.4 billion Korean won ($579 million), up 17% from the same quarter a year earlier. A FactSet consensus expected the company to report net profit of KRW652 billion.
REVENUE: Revenue rose 1.5% on year to KRW16.32 trillion.
WHAT WE WATCHED:
--MYANMAR PROJECT: The steel giant's stronger-than-expected net profit was helped by strong earnings from its investment in a gas field in Myanmar. The gas project offset weaker steel-sector profits in the quarter.
--SLOW DEMAND: The relatively marginal revenue growth indicates a still-weak global steel demand due to economic uncertainties, despite an expected pick-up in China's stimulus-driven demand.
--RAW MATERIALS: Worries about iron-ore and coking-coal prices have eased. Posco expects the cost of raw materials to decline as authorities in China and Brazil are addressing temporary supply disruptions and overheated markets.
Write to Kwanwoo Jun at email@example.com
(END) Dow Jones Newswires
July 23, 2019 01:28 ET (05:28 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.