POSCO, South Korean largest steelmaker first-quarter net profit plunged as a result of weak steel demand due to the COVID-19 outbreak across the globe.
The consolidated operating profit for the company fell 41.4 percent over the year to 705.3 billion Korean won ($ 570.5 million) in the January-March quarter.
Revenue tumbled 9.2 percent to 14.5 trillion Korean won ($11.7 billion), and net income slipped 44.2 percent to 434.7 billion Korean won ($ 351.6 million).
Net profit for the January-March quarter ended declined 44% from a year earlier to 434.70 billion Korean won ($352.4 million).
The decline in profit was attributed to weaker demand for steel across auto, construction, and other sectors due to the COVID-19 global health crisis.
The steelmaker forecast that the difficult business environment would continue amid a lower product price and a weaker demand especially from the automotive and construction industries.
The steelmaker also revised down its 2020 revenue forecast by 9.8 percent.
Source:marketwatch.com
