H2 earning prospects less brightening for Korean Inc vs stellar H1

South Korean companies reported nearly doubled earnings in the second quarter and could stand less appealing in the latter half.

According to Korean financial data provider FnGuide Inc. on Tuesday, 335 listed companies that have announced their second quarter earnings or with a consensus compiled by three or more brokerage houses are projected to have registered 89 percent jump in their combined operating income from a year ago.

The growth for the third quarter is estimated at a halved rate of 46.3 percent.

FnGuide analysis showed that 43 out of 51 industry sectors are expected to show softening in growth in the third quarter.

Vehicle components will likely report the steepest slowdown, with its 2,438.5 percent on-year growth in the second quarter coming to 6.7 percent in the third quarter. Other sectors are machinery, textile and apparel, and construction equipment.

The third quarter operating incomes of Youngone Corp., Hansae, and Fila Holdings are each projected to fall from a year ago.

The 336.4 percent growth in operating income of chemical companies will slow to 88.5 percent in the third quarter.

Companies in IT service, game software, media, chip, food and grocery, and internet service sectors, meanwhile, will see sharper growth in earnings in the July-September period.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]