Seoul, April 2 (BNA): First-quarter earnings forecasts for major South Korean companies, including the world’s leading chipmaker Samsung Electronics Co. and SK hynix Inc. , grim due to slowing global demand, an analysis of industry data. Show Sunday.
According to stock market forecasts compiled by Yonhap Infomax, Samsung Electronics is expected to post an operating profit of 720 billion won ($549.7 million) during the first three months of the year, South Korean news agency Yonhap reported.
It represented a 94.9 percent decrease from the first-quarter result of 14.1 trillion won compared to a year ago.
Samsung’s January-March sales are expected to drop 17.3% year-on-year to 64.3 trillion won.
SK hynix is also likely to stay in the red for two consecutive quarters.
The company appears to have posted an operating loss of 3.8 trillion won for the first quarter, with sales down 60.1% year-on-year to 4.9 trillion won.
The massive decline in profits appears to be attributed to the decline in global demand for memory chips amid the economic slowdown.
Yonhap Infomax analysis also forecast declines in first-quarter earnings for South Korean petrochemical companies and steelmakers.
MI