Global steel behemoth Posco, which is struggling to give shape to its India plans, today reported a 68.5 per cent fall in net profit to 325 billion Korea (South) Won ($246 million) for the first quarter of 2009, due to slump in demand amid the global economic crisis.
The company had clocked a net income of 1,031 billion Korea Won (KRW) in the first quarter of 2008.
"Sales decreased in all products as steel consuming industries weakened. Due to lower sales..., revenue and earning declined," it said.
The South Korea-based firm also saw its operating income going down by 70.7 per cent to 373 billion KRW for the period under review as compared to the year-ago period. The operating income for the first quarter of 2008 stood at 1,274 billion KRW.
Posco clocked a marginal 6.7 per cent increase in revenue to 6,471 billion KRW in the period under review. The company's revenue in the first quarter of 2008 stood at 6,006 billion KRW. "Due to global (economic) recession, revenue and earning declined," the company added.
In India, Posco has proposed investing Rs 51,000 crore for setting up a 12 million-tonne-per-annum integrated steel plant. The company has applied for mining lease with the government, which is yet to take a decision on it.
