ID :
196792
Sun, 07/24/2011 - 06:19
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https://oananews.org//node/196792
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S. Korea's listed firms see Q2 profitability decline: data
SEOUL, July 24 (Yonhap) -- Profitability of South Korea's companies fell sharply during the second quarter of this year from a year earlier due to higher raw material prices and less demand from abroad amid anxiety over major global economies, data showed Sunday.
According to the data provided by the Financial Supervisory Service, which track listed companies' earnings here, 58 firms have reported combined sales of 109.61 trillion won (US$104.2 billion) during the April-June period, up 9.2 percent from a year earlier.
Their operating profit, however, contracted 17.1 percent on-year to a combined 10.38 trillion won, while their operating profit-sales ratio also fell to the 9-percent range from about 12 percent last year, the data showed.
The declined profitability was attributed to higher raw material prices and less demand from overseas markets amid worries over the global economy.
Samsung Electronics Co., the world's No. 2 maker of mobile phones, posted 3.7 trillion won in operating profit during the second quarter, down 26.2 percent from a year earlier, according to the data.
LG Display Co., the nation's major flat panel maker, logged an operating loss of 48.3 billion won, a turnaround from a profit of 726 billion won a year ago.
POSCO, Hynix Semiconductor Inc. and Samsung C&T Corp. also saw their operating profits shrink 11.2 percent, 56 percent and 31.3 percent on-year, respectively, the data showed.
Experts worried that things will not likely turn around sharply during the second half as export conditions could remain tough amid the strengthening local currency and still cloudy market situations in major economies such as Europe and the United States.
According to the data provided by the Financial Supervisory Service, which track listed companies' earnings here, 58 firms have reported combined sales of 109.61 trillion won (US$104.2 billion) during the April-June period, up 9.2 percent from a year earlier.
Their operating profit, however, contracted 17.1 percent on-year to a combined 10.38 trillion won, while their operating profit-sales ratio also fell to the 9-percent range from about 12 percent last year, the data showed.
The declined profitability was attributed to higher raw material prices and less demand from overseas markets amid worries over the global economy.
Samsung Electronics Co., the world's No. 2 maker of mobile phones, posted 3.7 trillion won in operating profit during the second quarter, down 26.2 percent from a year earlier, according to the data.
LG Display Co., the nation's major flat panel maker, logged an operating loss of 48.3 billion won, a turnaround from a profit of 726 billion won a year ago.
POSCO, Hynix Semiconductor Inc. and Samsung C&T Corp. also saw their operating profits shrink 11.2 percent, 56 percent and 31.3 percent on-year, respectively, the data showed.
Experts worried that things will not likely turn around sharply during the second half as export conditions could remain tough amid the strengthening local currency and still cloudy market situations in major economies such as Europe and the United States.
