POSCO said that its earnings in 2011 dropped by 11.6% YoY due mainly to low steel prices and increased costs of raw materials.

Net profit reached KRW 3.7 trillion on a consolidated basis in 2011 as compared with a profit of KRW 4.19 trillion a year earlier. Sales rose by 44% YoY to KRW 68.9 trillion during the period, while operating income slipped 0.3% YoY to KRW 5.41 trillion.

POSCO said that costs of raw materials, including iron ore and coal, increased nearly 46% in 2011, but the increased costs were not fully reflected in steel prices.

(Sourced from www.koreajoongangdaily.joinsmsn.com)