Profits of KOSPI-listed companies halve in Q1

The operating and net profits of companies listed on the Korea Composite Stock Price Index (KOSPI) halved in the first quarter compared to the same period last year due to the economic slowdown. This is the first time that the profits of KOSPI-listed companies have dropped by over 50 percent since the first quarter of 2009 when the global financial crisis occurred. However, experts predicted that while the companies will struggle overall this year, they will gradually recover in the second half.

According to the Korea Exchange and the Korea Listed Companies Association on Wednesday, the consolidated net profits of 622 KOSPI-listed companies decreased by 57.68 percent from the same period last year to 18.8424 trillion won. Their operating profits also declined by 52.75 percent to 25.1657 trillion won. However, their sales rose by 5.69 percent to 25.6779 trillion won. Even if Samsung Electronics, which accounts for 9.14 percent of total sales, is excluded, the operating profits and net profits of remaining KOSPI-related companies dropped by 37.34 percent and 47.98 percent, respectively.

By industry, 12 out of 17 industries, excluding machinery (rose by 73.65 percent), nonmetallic mineral (25.98 percent), and transportation equipment (124.56 percent), saw a decline in operating profits.

Those listed on KOSDAQ also saw a decline in their profitability and financial stability due to a slowdown in the IT and manufacturing industries. The consolidated operating and net profits of 1,115 KOSDAQ-listed companies recorded 2.4902 trillion won and 2.4950 trillion won, respectively, in the first quarter, down by 42.2 percent and 26.3 percent compared to the same period last year. Their sales were 67.6036 trillion won, up 7.5 percent during the same period.


abro@donga.com