1 in 4 Korea-listed firms reports loss in Q1

June 9, 2014 Leave a comment

1 in 4 listed firms reports loss in Q1

Yoon Jae-un, Gang Bong-jin, Kim Yoon-jin

2014.06.02 18:32:04

One in four companies whose shares change hands in the KOSPI market reported a loss in the first quarter (Q1).
Their earnings did not show marked growth momentum, as views are mixed over the future of the global economic recovery and the stronger won has crimped export competitiveness. But their sales and bottom line improved modestly against a year ago.
26.89 percent, or 135 of 502 listed companies on the KOSPI, which submitted consolidated financial statements (fiscal year ends in December), posted net losses in Q1, said the Korea Exchange (KRX) and Korea Listed Companies Association Monday.
17.73 percent or 89 firms remained in the red, while 9.16 percent or 46 companies swung to loss. The listed firms’ combined operating profit shrank 1.48 percent, or 386.3 billion won, from 26.1 trillion won a year ago to 25.7 trillion won in Q1 this year. But their sales edged up 1.19 percent and net profit 4.57 percent during the same period. “The listed companies’ non-listed units are presumed to have performed poorly, and it is not quite right to say their profit rose by a noticeable margin,” said an official at the KRX. 
Earnings portion was heavily weighted towards large cap stocks such as Samsung Electronics. Samsung Electronics’ operating profit took up 32.9 percent of the listed firms’ total operating profit and the tech giant’s net profit 39.52 percent of the total.
One out of three companies listed on the KOSDAQ were also in the red. 32.28 percent, or 215 of 666 firms, which close books in December and submitted consolidated financial statements, reported losses in Q1, said the KRX and KOSDAQ Listed Companies Association.

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