POSCO profit up 6 percent, meets forecast

Fri Oct 21, 2011 3:08am EDT
 
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SEOUL (Reuters) - POSCO (005490.KS: Quote), the world's third-biggest steelmaker and backed by billionaire investor Warren Buffett, posted a 5.9 percent rise in profit for the third quarter, meeting consensus, thanks to higher sales volume and prices.

The South Korean company, which trails ArcelorMittal ISPA.AS and Baosteel (600019.SS: Quote), said on Friday its July-September operating profit was 1.09 trillion won ($951.8 million), compared with an average 1.15 trillion won forecast from analysts, according to Thomson Reuters I/B/E/S.

The profit compared with 1.03 trillion won a year ago, but was down from 1.5 trillion won in the previous quarter because of higher raw materials costs, POSCO said.

Shares in POSCO, in which Buffett's Berkshire Hathaway (BRKa.N: Quote) (BRKb.N: Quote) owns an around 5 percent stake, have fallen 26 percent this year, compared with a 10 percent drop in the broader market .KS11. ($1 = 1145.200 Korean Won)

(Reporting by Hyunjoo Jin; Editing by Muralikumar Anantharaman and Jonathan Hopfner)