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Korea’s top steelmaker Posco saw its second-quarter operating profit sink 11.2 percent from previous three-month period as demand in China slowed due to ongoing trade war with the United States, but nevertheless defended 1 trillion won ($849 million) threshold in bottom line for the eighth straight quarter as it explored revenue beyond the traditional steel.

Posco in a regulatory filing on Tuesday said it raised 1.07 trillion won in operating profit on a consolidated basis for the second quarter ended June, down 11.2 percent on quarter and 14.7 percent on year. It is the eight consecutive quarter for its operating profit to top 1 trillion won.

Its shares gained 1.27 percent to 239,000 won in Seoul on Tuesday.

Sales totaled 16.3 trillion won, down 1.9 percent from three months ago but gained 1.5 percent from a year earlier. Net profit fell 12.5 percent on quarter to 681.4 billion won. It was up 17.4 percent from a year ago.

The company said its non-steel businesses helped to sustain operating margin of 6.5 percent and an operating profit of over 1 trillion won for the eighth consecutive quarter. Its trading arm Posco International has delivered stable profits from gas fields in Myanmar and the global infrastructure business also has seen growth in sales.

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Posco, in a separate financial statement, reported an operating profit of 724.3 billion won, down 13.0 percent on quarter and 11.9 percent on year. Sales were 7.48 trillion won, shrinking 4.4 percent from the previous quarter and 3.3 percent from a year earlier. Net profit fell 18.7 percent on quarter and 6.0 percent on year to 545.4 billion won.

The company said sale price benefited from a weaker won but operating profit contracted due to reduced yield from maintenance works and higher raw material prices. Its operating margin in the second quarter came at 9.7 percent, down 1 percentage point from the previous quarter.

Its financial soundness has improved by reducing debts and accrued income tax. Its debt ratio on a consolidated basis was 65.0 percent, the lowest since 2010. The debt-to-EBITA (earnings before interest, tax, depreciation, and amortization) ratio was maintained at 2.6 times with debts totaling 19.2 trillion won on a consolidated basis.

Posco projected steel demand in China will improve slightly, helped by the state measures to boost the economy and support programs while global demand will remain slow.

In line with the projection, Posco in a separate filing said it revised up its sales target for this year to 36.2 million tons from 35.7 million tons and revenue to 31.1 trillion won from previous 30.1 trillion won. The revenue target on a consolidated basis was adjusted to 66.8 trillion won from 66.3 trillion won, accordingly.

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