Profitability of the Korean Inc. showed the best-ever reading in the first quarter, entirely owing to two global chipmakers which profited 50 percent from each chip they sold overseas.

According to data released by Bank of Korea, operating income margin of companies subject to external audit averaged 7.4 percent in the first three months of this year. The data is based on a survey of the country’s 3,324 companies with 12 billion won ($10.9 million) or more in total assets.

The operating income margin - or return on sales - recovered the 7 percent level in the first quarter ended March this year after falling to 6.1 percent in the previous quarter. The ratio hit 7.1 percent in the first quarter and 7.6 percent of the third quarter last year.

The operating profit margin of manufacturing companies averaged 8.8 percent, the best record since the central bank began compiling related data in the first quarter of 2015.

Among manufacturing companies, the profit-sales margin of machinery and electronics category reached the all-time high of 15.4 percent during the cited period thanks to growing demand for high-performance semiconductor products.

The overall operating income margin of manufacturing companies excluding major chipmakers Samsung Electronics Co. and SK Hynix Inc., however, was down by 2.1 percentage points to 5.3 percent. The operating income margin of non-manufacturing companies slipped to 5.4 percent from 5.5 percent.

The profit margin for large companies increased from 7.4 percent to 7.8 percent, while that of small- and mid-size companies was reduced from 5.7 percent to 5.3 percent.

By Yoon Won-sup and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]