KOSPI Companies Show Q3 Earnings Recovery... Operating Profit Up 58% QoQ

Photo by Korea Exchange Provided

[Asia Economy Reporter Geum Boryeong] In the third quarter, the earnings of KOSPI-listed companies generally showed a recovery trend.

According to the Korea Exchange on the 18th, an analysis of 590 KOSPI-listed companies with December fiscal year-end showed that the consolidated sales for the third quarter amounted to KRW 503.0647 trillion, and operating profit was KRW 36.4475 trillion. Compared to the second quarter, third-quarter sales increased by 12.19%, and operating profit rose by 57.78%.

Due to the impact of the novel coronavirus disease (COVID-19), earnings that had declined until the first half showed improvement in the third quarter. Compared to the previous year, the sales growth rate was 0.87% in the first quarter, but the cumulative growth for the first half was -5.78%, and for the third quarter cumulative was -4.77%. The operating profit growth rate was -31.2% in the first quarter, -24.18% for the first half cumulative, and -6.79% for the third quarter cumulative. Consolidated cumulative sales for the third quarter were KRW 1,440.5724 trillion, and operating profit was KRW 79.0424 trillion.

Photo by Korea Exchange Provided

Even excluding Samsung Electronics, which accounts for 12.17% of sales, the overall improvement trend in sales and operating profit was the same. The consolidated cumulative operating profit growth rate excluding Samsung Electronics was -40.98% in the first quarter, -35.38% for the first half, and -18.84% for the third quarter compared to the previous year.

Industries with increased sales in the third quarter compared to the second quarter included transportation equipment (25.12%), electrical and electronics (22.81%), among 14 sectors, while three sectors saw declines, including paper and wood (-9.42%) and construction (-8.22%). Compared to the same period last year, five sectors showed growth in third-quarter cumulative sales, including pharmaceuticals (15.96%) and food and beverages (7.13%).

Compared to the previous quarter, 442 companies (74.92%) recorded profits, while 148 companies (25.08%) posted losses.

In the financial sector, third-quarter operating profit and net profit increased by 4.56% and 10.89%, respectively, compared to the second quarter. In particular, the securities industry saw operating profit rise from KRW 1.6411 trillion in the second quarter to KRW 1.9475 trillion in the third quarter, showing a growth rate of 18.67%.

A Korea Exchange official explained, "Since COVID-19, non-face-to-face (untact) and pharmaceutical earnings have significantly recovered compared to the same period last year," adding, "We expect that industries still under the influence of COVID-19 will also show earnings improvement effects through efforts to normalize management."

This content was produced with the assistance of AI translation services.