Kosdaq Companies Also See Improved Earnings

By Cho Hyung-kwon
Staff Reporter

The first-quarter business results of listed companies ending their books in December were the best ever as both manufacturers and financial companies saw increased sales and profits, the Korea Stock Exchange (KSE) said on Tuesday.

Companies registered on the technology-filled Kosdaq Stock Market also saw improved earnings in the first three months of the year, led by semiconductors and IT equipment sectors.

The main exchange said that despite the uncertain outlook on the domestic and global economy, surging exports and earnings recovery by financial firms pushed the combined first quarter net profit to a historic high.

The total net profit of 550 companies listed on the KSE in the first quarter of the year stood at 14 trillion won ($11.9 billion), up 100.38 percent from a year earlier.

Total sales also rose 14 percent to 148.1 trillion won ($125.5 billion) while operating profit climbed 44.74 percent from a year ago to 15.4 trillion won ($13.1 billion).

``In 2000, the combined first quarter net income of listed firms reached 17 trillion won but that figure included the profit Daewoo Group gained through special debt cancellation. Thus this year’s profit is in essence the largest ever for any first quarter,’’ the KSE said in a report.

``For manufacturers, revenue and net income jumped significantly on the back of robust export performance. And financial firms managed to overcome last year’s crises triggered by SK Networks and LG Card as they returned to the black,’’ the report noted.

The combined net profit of Kosdaq companies jumped 139.8 percent from last year to 561 billion won while total sales rose 16.3 percent to 12.2 trillion won.

Manufacturers on the KSE saw net profit rise 85.1 percent from a year ago to 13.2 trillion won while their operating profit and total sales also climbed 42.7 percent and 14.6 percent, respectively.

Samsung Electronics’ net profit surged 178.2 percent from a year ago to 3.1 trillion won in the first three months while that of Korea Electric Power Corporation (KEPCO) jumped 89.1 percent and POSCO’s net income gained 53.6 percent.

Meanwhile, KT’s net profit declined 64.45 percent to 341 billion won while Hynix Semiconductor, Korean Air and Hanjin Shipping returned to the black.

For financial companies, revenue increased 8.4 percent to 13.5 trillion won, operating profit soared 521.1 percent to 282.7 billion won and net profit stood at 814.9 billion won.

``While the first quarter earnings were impressive, it still remains to be seen how the companies will do in the second quarter as high oil prices and uncertain economic conditions could hurt profitability,’’ a local analyst said.

kevincho@koreatimes.co.kr