Profitability Comparison
Apple and Toyota are enjoying high profitability thanks to new products and foreign exchange factors, whereas Samsung Electronics and the Hyundai Motor Group are failing to improve their profitability.
According to industry sources, Toyota’s estimated operating profits increased about 20 percent to approximately 2.7 trillion yen (US$22.7 billion) between the fiscal years of 2013 and 2014. The amount, about 200 billion yen (US$1.7 billion) more than previously expected, is the highest since its inception. Toyota had recorded an annual operating profit growth of 74 percent in 2013 as well, on the back of the weak yen.
Meanwhile, Hyundai Motor Company’s business profits dropped 9.2 percent last year to stand at 7.55 trillion won (US$6.80 billion). This amount is the lowest since 2010, when its annual profits were 5.9185 trillion won (US$5.3335 billion). The business profit ratio fell from 9.5 percent to 8.5 percent, too. Likewise, Kia Motors’ operating profits dropped 19 percent year on year to 2.5725 trillion won (US$2.3183 billion) with its business profit ratio falling from 6.7 to 5.5 percent. This is the first time in four years that Kia Motors’ profits are below 3 trillion won.
In the meantime, Apple has outpaced Samsung Electronics in terms of quarterly profits since 2011. According to Thomson Reuters, Apple’s net profits for the last quarter of 2014 are estimated at US$15.3 billion, while Samsung Electronics’ business profits were 5 trillion won (US$4.5 billion) or so during the same period. The former’s business profit ratio reached as high as 39 percent in the fourth quarter of 2011 and has remained over 30 percent in the following quarters. In contrast, Samsung Electronics has continued to fall since it rose to 20 percent in the first quarter of last year.