Big business suffers in Q3 as profits dipMost of Korea’s 10 largest conglomerates saw their earnings fall in the third quarter from three months earlier amid economic woes and declining demand in advanced economies, data showed yesterday.
With the sole exception of SK, nine of the top 10 conglomerates saw their quarterly business results worsen in the July through September period, according to data from financial provider FnGuide and the Financial Supervisory Service.
The tally was based on the results of conglomerate affiliates, which released their third-quarter earnings.
Five SK affiliates saw their combined net income nearly triple on-quarter to 2.21 trillion won ($1.94 billion). The sharp growth was mostly powered by key affiliate SK Innovation, the country’s top refiner, whose net income soared around six fold.
Samsung fared reasonably well given the business environment, with the combined net income of 10 affiliates slipping 2.12 percent to 4.03 trillion won. Samsung Heavy Industries was excluded from the tally.
Its crown jewel, Samsung Electronics, saw its earnings slip only 1.84 percent despite challenges in the tech sector, while Samsung C&T and Cheil Industries saw their net profits jump 41.56 percent and 33.02 percent, respectively.
Some conglomerates, however, saw their earnings plunge sharply as they failed to weather uncertainties.
The combined net earnings of six Hyundai Motor affiliates slumped 32.37 percent to 3.27 trillion won, while that of three Lotte affiliates tumbled 31.63 percent to 479.4 billion won.
LG bore the brunt of the economic woes. Net losses at 10 LG affiliates totaled 425.7 billion won as LG Electronics and LG Display swung into negative territory due to poor smartphone sales.
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