Slow Growth Ahead for Major Korean Companies
The operating profits of major Korean companies are expected to fall in the third and fourth quarters, with the ongoing eurozone debt crisis and the global economic slowdown acting as a drag on the Korean economy.
Analysts downgraded their third-quarter earnings outlook for 75 companies out of the 105 major listed firms from earlier estimates made in April, according to FnGuide, a financial information provider.
Analysts predict that 17 of the remaining 30 companies will see single digit growth rates, while the rest are expected to see double digit growth.
When classified by industry, 16 companies making petrochemicals and other raw materialshad their third-quarter earnings outlook revised down by 20-percent, while 5 energy companies were lowered by 19-percent and 4 telecommunications companies were adjusted by 15-percent.
Not all companies are expected to fare poorly.
Samsung Electronics, Hyundai Motor and Kia Motors are all expected to perform better in the third and fourth quarter.
Analysts say that the companies have managed to come out ahead because they are competitive worldwide.
Samsung Electronics is expected to earn an operating profit of 6.7 billion U.S. dollars,.. up from 5.5 billion dollars,a nearly 20-percent increase.
Hyundai Motor and Kia Motors are expected to have operating profits of nearly 3 billion dollars.
Ji Myung-kil, Arirang News.
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