Posco, the world’s fourth-largest steelmaker, on Monday said its quarterly profit jumped 55 per cent to the highest level in two years, driven by higher steel prices and robust sales of value-added steel products.

Encouraged by the better-than-expected results, the South Korean steelmaker raised its 2007 operating profit target to Won4,600bn ($5bn) from Won4,300bn and the full-year sales target to Won22,700bn from Won22,600bn. However, Posco shares closed down 0.89 per cent at Won555,000 yesterday on profit-taking, with the company’s market value having doubled in the past year on strong earnings momentum.