Over 40% of listed companies see profits drop in Q3
Korea's listed companies are turning in their third quarter report cards, and things aren't looking so good.
Of the fifty-one companies whose results have been analyzed by more than three brokerage firms, about 45 percent posted lower operating profits in the July to September period.
The companies that saw their operating profits rise were mostly from the IT sector.
Five of the seven IT companies on the list, including Samsung Electronics and SK Hynix, which have been enjoying an upswing in exports of memory chips, all saw their operating profits rise by a big margin.
But most other companies, especially those in the construction and oil refining sectors, saw their operating profits drop.
Companies like Samsung Engineering fell into the red and the oil refiner S-Oil saw its operating profit drop by over ninety-five percent.
Auto giants Hyundai Motor and Kia Motors also turned in worse-than-expected third quarter performance reports, prompting experts to warn that forecasts for fourth quarter operating profit are being revised downwards.
But it's a similar story elsewhere around the world.
IBK Securities and the corporate researcher IBES said Thursday,.. profits of companies are expected to fall in most major economies around the world.
Corporate profit forecasts for the next 12 months for countries like Spain, Britain and Korea were all expected to fall for the next 12 months and by an even greater margin in developing countries like Portugal and Indonesia.
Only six of the 45 countries surveyed had a positive corporate profit outlook: Russia, Taiwan and Japan.
While stock prices have been on the rise, helped by easy monetary policies of the U.S. and other major economies, experts say the pace could slow, given the poor profitability outlook.
Yoo Li-an, Arirang News.
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