By Kwanwoo Jun

Posco Holdings' first quarter net profit dropped compared with the same period a year earlier due to sluggish demand and higher raw-material prices, but the South Korean steel maker's result was a sharp improvement from its fourth-quarter loss.

Net profit for the quarter ended in March was 619.00 billion Korean won ($449.3 million), down 26% from the same quarter a year earlier, the company said Thursday. Still, the result was higher than the market expected and marked a reversal from the prior quarter's KRW321.00 billion net loss.

First quarter revenue fell 6.9% on year to KRW18.052 trillion, while operating profit dropped 17% to KRW583.00 billion.

Posco said higher raw material prices weighed on its earnings amid a slowdown in the industry, though increased steel product prices cushioned the fall in its operating profit.

Posco said it aims to achieve KRW77.869 trillion in revenue for 2024.

Write to Kwanwoo Jun at

(END) Dow Jones Newswires

04-25-24 0328ET