POSCO’s consolidated net profits for the third quarter of the year fell 78.4 percent from a year to 233 billion won ($203 million), the steelmaker said Friday.

Over the same period, POSCO’s consolidated sales and operating profits respectively increased by 51.5 percent and 5.2 percent.

The company attributed the fall in net profits to losses incurred due to changes in foreign exchange rates.

Over the same period, POSCO’s independent sales and operating and net profits increased respectively by 12.2 percent, 16.8 percent and 5.9 percent.

The world’s fourth largest steelmaker also said that with the world’s economic conditions remaining uncertain, it has raised its cost-cutting target to 1.4 trillion won from the originally set 1 trillion won.

In addition, the company has lowed the investment budget for this year from 7.3 trillion won to 6 trillion won.

In the meantime, Daewoo Engineering & Construction Co., South Korea’s fourth-largest builder, said Friday that it swung to the black in the third quarter of the year from a year earlier on increased overseas orders.

Net income came to 27.8 billion won ($24.2 million) in the July-September period, a turnaround from a net loss of 273.7 billion won a year earlier, the company said in a regulatory filing, Yonhap News said.

By Choi He-suk (cheesuk@heraldcorp.com)