Wednesday, January 14, 2009

Posco Says Too Early To Forecast January Results

See also: POSCO CEO 'to resign'

South Korean steelmaker POSCO said that it is too early to predict January results after a local newspaper reported that it is very likely to report its first operating loss this month.

Ms Ko Min-jin spokeswoman of POSCO said that "Business conditions are likely to be challenging this year but we have had only seven business days this month and it is too early to predict financial results for January.”

The Maeil Business newspaper had quoted an unnamed POSCO senior official as saying that the company was likely to post its first operating loss and reported that the firm's board may replace its top management, including chief executive Lee Ku-taek, at a Thursday board meeting.

Reuter's earlier quoted Mr Lee Dong hee CFO of POSCO as saying that it expects its January 2009 steel sales to fall by around 27% to 1.9 million tonnes, hit by faltering demand. Mr Lee was reported to have said that "We produce and sell around 2.6 million tonnes every month but sales are seen falling down to around 1.9 million tonnes in January 2009 due to weak demand."

POSCO plans to update its 2009 production plans on January 15th 2009 when it announces its fourth quarter results.

Source: CS Steel News, Steel Guru

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