Disappointing Industries
Samsung Electronics’ Q1 earnings announcement is scheduled for April 7. Securities firms' operating profit forecast is 720.1 billion won (US$547.3 million), down 94.9 percent year on year. This is the first time in 14 years that the Q1 profit estimate is less than 1 trillion won.
SK Hynix posted an operating loss of 875.7 billion won (US$665.6 million) in Q4 last year and the Q1 loss is estimated at more than 3.78 trillion won (US$2.87 billion). The Q1 loss of LG Display, which amounted to 2 trillion won (US$1.5 billion) or so in 2022, is estimated at more than 1 trillion won (US$760 million).
Negative earnings surprises are likely in the petrochemical industry as well. Daishin Securities estimated the Q1 operating loss of LG Chem’s petrochemical division at 41.9 billion won (US$31.8 million). According to KB Securities, Lotte Chemical is likely to have posted an operating loss of 134.5 billion won (US$102.2 million) in Q1 as the fourth consecutive quarterly loss. LG Chem and Kumho Petrochemical are likely to show a year-on-year plunge of 47.7 percent and 81.8 percent, respectively. In the steel industry, POSCO Holdings' Q1 profit is estimated at 632 billion won (US$480 million), down 72 percent from a year earlier.
On the other hand, Hyundai Motor Company’s Q1 profit is estimated at 2.778 trillion won (US$2.111 billion, up 44 percent year on year) and Kia’s is estimated at 2.1275 trillion won (US$1.6170 billion, up 32.4 percent year on year). LG Energy Solution’s is estimated at 499.1 billion won (US$379.3 million, up more than 92 percent year on year).