South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced that in the fourth quarter of 2012 its net profit decreased by 45 percent to KRW 561 billion ($518 million), compared to the same quarter of the previous year. The company's net profit for the full year 2012 stood at KRW 2.38 trillion ($2.2 billion), down 35.8 percent year on year due to lower prices and higher raw material costs.

According to its financial results, POSCO's sales revenue in the fourth quarter totaled KRW 15.06 trillion ($13.9 billion), down 19 percent year on year. Meanwhile, its operating profit for the given quarter amounted to KRW 581 billion ($536 million), down by 43 percent compared to the corresponding quarter of the previous year.

In 2012, the steelmaker's sales revenue fell 7.7 percent to KRW 63.6 trillion ($58.7 billion), while its operating profit amounted to KRW 3.65 trillion ($3.37 billion), down 33.2 percent, both compared to the previous year.

In 2012, POSCO produced 38 million mt of crude steel, up 1.77 percent, while its finished steel product sales in the same period increased by 1.6 year on year to 35.04 million mt.

According to POSCO, the 3 million mt/year integrated steel mill in Indonesia scheduled to be completed at the end of the current year will require six months for profit normalization. Given the company's ongoing overseas projects, total capital expenditure for 2013 will be slightly higher than 2012. Of total planned capital expenditure of KRW 7-8 trillion ($6.5-7.4 billion) for 2013, KRW 3.5-4 trillion ($3.3- 3.7 billion) will be allocated for POSCO, with the remainder going to affiliates.