SEOUL, July 20 (Xinhua) -- POSCO, South Korea's biggest steelmaker, saw its second-quarter operating profit post a double-digit increase due to positive earnings in non-steel businesses such as energy and construction, a regulatory filing showed Thursday.
Consolidated operating profit jumped 44 percent from a year earlier to 979.1 billion won (869 million U.S. dollars) in the April-June period.
Revenue advanced 16.2 percent to 14.94 trillion won in the cited period, and net income grew 6.6 percent to 530.1 billion won.
Improved earnings in the non-steel businesses, including trading, construction and energy, had a positive effect on the overall profit growth.
The closure of an obsolete furnace and the maintenance of part of its plants led to a reduction in steel production and sales of the POSCO.
Steel product inventories, made of high-priced materials purchased in the first-quarter, were sold in the next quarter, resulting in a lower profit in the second quarter.
The company expected demand for steel products to remain strong down the road thanks to recovery in advanced economies and the restructuring in the global steel industry.
