Samsung Drags KOSPI Down
According to the Korea Exchange and the Korea Listed Companies Association, 628 KOSPI-listed companies’ sales for the first half of this year decreased 5.8 percent from a year ago to 533.7469 trillion won (US$450.7226 billion). During the same period, their operating profits and current net income fell 2.1 and 5.9 percent to 31.3659 trillion won (US$26.4791 billion) and 27.752 trillion won (US$23.415 billion), respectively.
This can be attributed to their sluggish domestic and overseas business performances that followed the domestic economic downturn and the repercussions of the Greek crisis. Daewoo Shipbuilding & Marine Engineering recorded more than three trillion won in operating losses in the second quarter alone, while Samsung Electronics’ sales dropped by 12.21 percent between the first half of 2014 and 2015.
The figures improve a lot when Samsung Electronics is taken out of the calculations. In this case, the decrease in sales falls to 4.8 percent and the operating profits and current net income go up by 17 and 7.7 percent, respectively. The 627 companies have an operating profit ratio of 5.83 percent in this case, too.
Sales went up in the six sectors of medical and precision equipment, pharmaceuticals, textiles and garments, food and beverages, nonmetallic minerals, and transportation and warehousing. Meanwhile, the 11 industries including chemical, steel and metal, and electricity and gas showed drops in sales. The 41 companies in the financial sector outperformed those in the manufacturing sector in the amount of increase in sales. Securities firms’ operating profits and current net income soared by 314.9 and 480.4 percent year-on-year, respectively.
In the meantime, the sales of 902 KOSDAQ-listed companies edged up by 0.8 percent year-on-year to 50.2 trillion won (US$42.4 billion). They increased their operating and net profits each by 0.46 and 10.47 percent during the period, as well.
Those in construction, banking, manufacturing, and distribution services succeeded in increasing their sales and profits at the same time, and those in other services, culture, and entertainment improved their profitability in spite of a decrease in sales. The operating profits of the distribution service industry, in particular, soared from 153.9 billion won (US$129.9 million) to 302.359 billion won (US$255112 million). The operating profits rose in 11 sectors such as Internet and communication services and digital content, but fell in 10 sectors including telecoms equipment, computer services, and computer component. 640 out of the 902 companies were in the black in the first half of this year.