Korean Inc. delivers double-digit income growth Q3, even without Samsung Elec

2020.11.19 12:50:18 | 2020.11.19 15:12:20

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Korean Inc. delivered double-digit income growth in the third quarter despite lingering pandemic crisis, with six out of 10 listed companies performing better than expected.

According to data by the Korea Exchange, 590 Kospi-listed companies, excluding financial players, earned a combined operating income of 36.4 trillion won ($32.8 billion) on a consolidated basis for the third quarter ended Sept. 30, gaining 27.5 percent from a year earlier. Their total net income came to 25.6 trillion won, up 44.5 percent on year.

Revenue fell 2.5 percent on-year to 503.1 trillion won.

Even when excluding Samsung Electronics Co., operating income gained 16 percent on-year to 24.09 trillion won.

Exporters in general witnessed demand recovery, and even machinery and other economy-sensitive businesses saw improvement, said Kim Hak-kyoon, a Shinyoung Securities director.

Earnings of 127 firms or 63.5 percent of 200 companies tracked by Yuanta Securities beat estimates. Chipmakers Samsung Electronics and SK Hynix Inc. outperformed market consensus by 115.6 percent. Even without them, they have exceeded estimates by 104.3 percent.

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Electricity and gas firms showed the strongest earnings improvement with a 101.4 percent on-year jump. Operating income of electronics firms rose 67.3 percent on year, medical/pharmaceuticals 50.7 percent, non-metallic minerals 44 percent, foods 32.5 percent, and machinery 20.2 percent.

But paper/wood pulp businesses saw bottom-line plunge by 65.3 percent from a year earlier, textile/clothing 17.6 percent, steels 16.2 percent, distributors 15.6 percent, transportation/warehouse 5.9 percent.

In the tech-savvy junior Kosdaq market, 958 firms delivered a consolidated operating income of 3.5 trillion won in total, up 31.4 percent on year. Their combined revenue rose 5.3 percent on-year to 50.7 trillion won, while net income was up 3.9 percent at 2.2 trillion won.

The combined operating income of 357 IT firms gained 11.2 percent on year, and their combined revenue 8.0 percent. Revenue of 601 non-IT firms, rose 3.6 percent on year.

By Kang Bong-jin and Cho Jeehyun

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