By Kwanwoo Jun
Posco reported its first-quarter results on Monday. Here is what you need to know:
NET PROFIT: The South Korean steelmaker posted net profit of 1.139 trillion won ($1.02 billion) for the quarter ended April 31, nearly triple from the same period a year earlier.
REVENUE: First-quarter revenue rose 10% to KRW16.069 trillion, above the company's preliminary forecast, while operating profit more than doubled from a year earlier to KRW1.552 trillion.
WHAT WE WATCHED:
--ABOVE CONSENSUS: The quarterly net profit beat a FactSet-compiled consensus forecast of KRW876.38 billion, driven by higher steel prices on growing demand amid hopes for an economic recovery from the coronavirus pandemic.
--MARGINS: The company attributed the solid earnings growth to stronger profit margins. Steel makers globally stand to benefit from brisk demand in auto, construction and shipbuilding industries, supported by fiscal stimulus and recovery hopes, according to analysts.
--SUBSIDIARIES: Posco said its strong earnings were also supported by solid growth at its subsidiaries, including its trading arm and chemical unit which ramped up production of materials used in electric vehicles.
Write to Kwanwoo Jun at firstname.lastname@example.org
(END) Dow Jones Newswires
April 25, 2021 23:14 ET (03:14 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.