South Korea’s listed companies are predicted to see their fourth-quarter earnings shrink from three months earlier due to the country’s weak exports amid the rising won, a research firm said Wednesday.
According to FnGuide Inc., 114 major listed companies are forecast to report a combined operating profit of 30.4 trillion won ($27.9 billion) for the October-December period, down 4.9 percent from the third quarter.
The gloomy earnings outlook comes as the prolonged appreciation of the local currency against the U.S. dollar is feared to hurt the listed companies’ exports down the road, market watchers said.
A stronger won inflicts foreign exchange losses on exporters, making South Korean goods more expensive overseas, which damages local firms’ earnings.
The prediction for the listed firms’ fourth-quarter earnings made this month fall short of the earlier estimate tallied in October, the financial information provider said.
The downward revisions were made in various sectors, with financial, energy and communication-related firms’ earnings adjusted 7.87 percent, 7.88 percent and 7.97 percent lower this month compared with the previous month.
Samsung SDI Co., the world’s top maker of plasma display panels, is expected to register an operating income of 50.4 billion won in the fourth quarter, falling 96.7 percent on-quarter due to losses in the solar cell business.
Samsung Electronics Co., a leading maker of mobile phones, is also anticipated to perform worse in the October-December period by earning 7.94 trillion won, down 2.2 percent from three months earlier, the data showed. (Yonhap News)
