South Korean steelmaker POSCO reported an 84.3% drop in Q2 operating profit as the coronavirus pandemic lowered steel demand, the company said on Tuesday.
POSCO said it expects steel demand to rebound in the third quarter, but revised its 2020 sales forecast to 55.4 trillion won ($ 46.24 billion) from the April forecast of 57.5 trillion.
The world’s fifth-largest steelmaker said in a report that it posted a consolidated operating profit of 168 billion won in April-June, compared to 1.1 trillion a year earlier.
The figure fell short of the 291 billion won average from 14 analysts, according to Refinitiv.
POSCO’s second-quarter revenues fell 15.9% to 13.7 trillion won, while net income fell 84.6% to 105 billion won.
In the midst of the pandemic, demand for steel from automakers and construction companies, among other things, declined during the lockdowns to limit the spread of the virus.
Global steel demand is expected to fall 6.4% this year as the pandemic slowed industrial activity, the World Steel Association said last month.
POSCO shares rose 1.9% at 0455 GMT following the results, while the Seoul KOSPI benchmark added 1.6%.