How to Look Good - for 3 Quarters
Many companies lumped their expenses last year into the fourth quarter to make their performances in the first three quarters look better, the Korea Stock Exchange said.The exchange said that the total fourth-quarter operating profits of 414 listed corporations it surveyed recently, at 7.4 trillion won ($5.8 billion), fell short of the average of the three previous quarters by more than 2 trillion won. Also, the firms had a combined operating loss in the fourth quarter of 3 trillion won, contrasting with total operating profits of more than 8 trillion won in the first quarter, over 6 trillion won in the second and 7 trillion won in the third.
Samsung Heavy Industries reported a 22 billion loss for the year after having shown a 49 billion won profit as of the third quarter. Hyundai Corporation, after showing a profit of 10 billion won through three quarters, reported a 76 billion won loss for the year, before returning to the black with a 7.6 billion won profit in this year's first quarter.
"Investors should be watchful when results are strong through three quarters," an exchange official said. "They may turn if firms defer expenses and charges into the fourth."
by Rah Hyun-cheol
with the Korea JoongAng Daily
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