Posco Sinks to 9-Year Low as Revival Plan Fails to Convince
ByA turnaround plan from Posco failed to earn early approval from investors as shares in South Korea’s biggest steelmaker sank to a nine-year low after the company reported a slump in profit and vowed to focus anew on its main business.
The stock declined as much as 3.8 percent to 201,000 won on Thursday, the lowest level since January 2006, and traded at 203,500 won at 2:49 p.m. in Seoul as the benchmark Kospi index was 0.7 percent higher. The shares have dropped for the past five years and retreated a further 26 percent in 2015.
A flood of cheap exports from China, where steel demand is faltering after decades of growth, pushed prices to the lowest level in more than a decade, eroding profits at mills across Asia. Chief Executive Officer Kwon Oh Joon, who’s steered the company since March 2014, said on Wednesday he would quit non-core operations to focus on Posco’s mainstay steel. Second-quarter profit sank 61 percent, worse than analysts expected…
Posco Sinks to 9-Year Low as Revival Plan Fails to Convince
