By Kwanwoo Jun
Posco forecasts its third-quarter operating profit to jump nearly five-fold from the same period a year earlier, beating street views.
Analysts expect that brisk demand and higher-than-expected average selling prices for steel products likely drove the South Korean steelmaker's strong earnings growth.
Posco said Wednesday that it projects operating profit of 3.110 trillion won ($2.60 billion) for the quarter ended September, versus KRW670.00 billion a year earlier.
The preliminary earnings forecast is above a FactSet-compiled market consensus for operating profit of KRW2.666 trillion for the quarter.
Revenue is expected to rise 45% to KRW20.610 trillion for the quarter, the company said in a regulatory filing.
Posco shares closed 0.9% higher at KRW325,000 after the release of preliminary quarterly results.
Posco is due to release its full quarterly earnings report later this month.
Write to Kwanwoo Jun at firstname.lastname@example.org
(END) Dow Jones Newswires