Major South Korean companies show mixed Q1 results

Samsung C&T Corp. logo [Courtesy of Samsung C&T]

Major South Korean companies are showing mixed earnings performances for the first quarter of this year.

On Wednesday, Samsung C&T Corp. reported first-quarter operating profit of 640.5 billion won ($477.4 million), up 18.3 percent from a year ago, with sales of 10.24 trillion won, down 1.9 percent. By segment, the company’s construction division was the best performer with sales of 4.6 trillion won and operating profit of 292 billion won. Year-on-year, sales surged 52.4 percent and operating profit soared 88.4 percent.

Samsung C&T attributed the improvement to the full-scale implementation of recently won large-scale construction projects. During the same period, sales and operating profit in its trading division fell 37.7 percent and 47.9 percent to 3.60 trillion won and 99 billion won, respectively.

In contrast, LG Display Co. suffered losses for the fourth consecutive quarter. The company recorded an operating loss of 1.1 trillion won in the first quarter due to weak demand for its TV and IT panels due to the global economic downturn. This marks the first time that its quarterly operating loss exceeded 1 trillion won. The company also posted a net loss of 1.15 trillion won, while its revenue dropped by 31.84 percent to 4.41 trillion won.

Two major South Korean electronic component companies, LG Innotek Co. and Samsung Electro-Mechanics Co., reported a drop in their operating profit for the first quarter due to weak demand for IT products worldwide.

LG Innotek announced that its first-quarter operating profit came to 145.3 billion won, down 60.4 percent from a year ago. However, its revenue increased by 10.73 percent to 4.37 trillion won. Samsung Electro-Mechanics also reported a decline in its first-quarter revenue and operating profit, down 23 percent and 66 percent respectively compared to the same period last year.

Hyundai Steel Co. said its first-quarter operating profit reached 333.9 billion won, down 52.1 percent on-year. The company swung a profit in the quarter from an operating loss of 276 billion won in the fourth quarter of last year.

Hyundai Steel’s first-quarter revenue fell 8.5 percent on-year to 6.38 trillion won, with net profit down 55.4 percent to 217.8 billion won. However, compared to the previous quarter, sales increased by 6.8 percent and net profit turned positive.

Hyundai Mobis Co.’s first-quarter results were boosted by Hyundai Motor Group’s strong global performance. Hyundai Mobis reported first-quarter revenue of 14.66 trillion won, up nearly 30 percent from a year earlier. Operating profit and net profit also increased 8.1 percent and 61.6 percent to 418.1 billion won and 841.8 billion won, respectively.