Sales increased, profitability fell for listed companies last year

Companies listed on the Seoul stock market saw sales increase last year but profitability worsen, the Korea Listed Companies Association said Monday.

The per capita sales revenue of 469 companies listed on the benchmark KOSPI, whose fiscal year ended in December, was an average 1.68 billion won (142 million U.S. dollars) last year, up 11.71 percent from 2010. Per capita operating profit dropped 3.98 percent to 115 million won (97,457 dollars), however, while per capita net profit declined by 14 percent to 82 million won (69,491 dollars).

The calculations were based on the consolidated financial statements of International Financial Reporting Standards. The transportation and warehouse sector, whose exports were hit hard by the eurozone debt crisis, saw per capita operating profit plunge 89.15 percent to 9 million won (7,627 dollars).

The corresponding figure for electricity and gas shrank 81.48 percent to 25 million won (21,186 dollars), and that of the precision medical sector fell 81.3 percent to 10 million won (8,474 dollars).

The profitability of the electric and electronics industries also worsened, with their per capita operating profit falling 31.48 percent to 68 million won (57,627 dollars). The figure for pharmaceuticals shrank 23.76 percent to 29 million won (24,576 dollars).

On a brighter note, construction and non-metals returned to the black. Financial institutions also saw better earnings with per capita operating profit rising 40.56 percent to 709 million won (669,491 dollars).

The 649 companies also increased hiring last year, with their combined number of employees at 1.062 million, up 3.12 percent from 1.03 million in 2010.

Korea Zinc showed the biggest per capita operating profit of 941 million won (797,457 dollars), followed by Honam Petrochemical with 900 million won (762,711 dollars), Keystone Global 787 million won (666,949 dollars), Hyundai Globis 719 million won (609,322 dollars), and Kumho Petrochemical 662 million won (561,016 dollars).

libra@donga.com