Steelmaker POSCO said Tuesday its third-quarter sales totaled W8.91 trillion while operating profit amounted to W819 billion and net profit to W744 billion (US$1=W1,103).

In the second quarter, POSCO's operating profit exceeded W1 trillion for the first time in three quarters, but the firm was unable to match that feat during the July to September period.

Sales dropped 10.6 percent year on year, while operating profit declined 24.7 percent. Net profit, however, increased a whopping 198.8 percent over the same period.

"Sales volume increased slightly due to our efforts to find new markets and develop new products," said a POSCO staffer. "But revenues and operating profit fell as product prices declined because of lackluster demand."

POSCO said the huge increase in net profit was due to foreign exchange profits.