The nation’s top steelmaker POSCO recorded 14.6 trillion won ($13 billion) in total sales, 717 billion won in operating profit, and 292 billion won in net profit in the first quarter of the year, company officials said Thursday.

The holding company of POSCO alone recorded 7.7 trillion won in sales and 581 billion won in operating profit, which was a 4.8 percent fall and a 53.3 percent rise from the previous quarter, respectively.

“Though the total sales level fell slightly due to the fall in global demand, the operating profit level soared due to the advancement of high-value-added products and the extensive cost reduction project,” said a POSCO official.

The steelmaking conglomerate saved 137.8 billion won during the first quarter, lowering its production costs by 205 billion won from the previous quarter.

It has also been largely focused on the sales of profitable items such as car and home appliance components. While the global demands for steel products remained sluggish over recent years, the company predicted that the figures would rebound in the second quarter.

Sustainable economic growth is expected in China, India and Southeast Asia due to expansionary measures and quantitative easing, officials said.

“We will further reinforce the marketing strategies on high-value-added products and maintain this upward trend,” said the official.

POSCO’s total sales target for this year is 63 trillion won across the conglomerate and 32 trillion won for the steelmaking headquarters alone.

By Bae Hyun-jung (tellme@heraldcorp.com)