[EQUITIES] POSCO’s Q3 operating profit may surge by 40%: analyst

[THE INVESTOR]  POSCO’s third quarterly earnings is expected to beat market estimates for the second consecutive quarter due to rising steel prices, a local securities firm said on Sept. 23.

The consolidated operating profit of POSCO is likely to increase 40 percent to 915.8 billion won (US$829 million) on-year in the July-September period, according to HMC Investment Securities.

“The improvement was driven by steel price hikes in domestic and Chinese markets during the third quarter,” said Park Hyun-wook, an analyst at HMC Investment Securities. 

Its key affiliates, including POSCO Energy and POSCO E&C, will contribute to the better-than-expected earnings.

POSCO’s steady stock price, which stays in the 200,000-won range, is on account of expectations that steel prices could increase in the fourth quarter.

Shares of POSCO traded at 226.500 won, up 0.22 percent, as of 10:24 a.m.

By Park Han-na (hnpark@heraldcorp.com)