Listed firms fare worse in Q2 on economic woes

Korean listed firms saw their net profits plunge in the second quarter despite increased sales, due to the protracted global economic slowdown, data showed Sunday.

According to the Korea Listed Companies Association, the combined net profit of 80 major listed firms was estimated at 16.03 trillion won ($14.20 billion) in the second quarter, down 23.9 percent from a year earlier.

Their total sales rose 6.1 percent on-year to 297.94 trillion won in the April-June period, with their operating profit falling 11.4 percent to 22.51 trillion won.

Local banks’ earnings slipped in the April-June period on a declining net interest margin, a key barometer of profitability, the data showed.

Woori Finance Holdings Co., South Korea’s top banking group, said earlier its second-quarter earnings declined 63 percent on higher loan-loss reserves and falling profit margin.

Oil refiners also lost money on falling crude prices, which exacerbated their earning margins. SK Innovation Co., Korea’s top refiner, as well as other major firms, swung to a net loss in the second quarter, the data showed.

Electronic manufactures performed better than other industries on the back of increased revenue of Samsung Electronics Co., the world’s largest maker of computer memory chips and smartphones, the association said.

Samsung’s net profit reached a record 5.2 trillion won in the April-June period, compared with a net income of 3.5 trillion a year earlier, the company said in a regulatory filing last month. (Yonhap News)