Consumption ups profits

Korean-listed companies are expected to see their first-quarter earnings jump more than 11 percent from three months earlier on improvements in the Chinese economy and domestic consumption, a report showed yesterday.

According to the report by financial information provider FnGuide, 103 major listed companies are expected to chalk up a combined operating profit of 28.7 trillion won ($27.2 billion) for the January-March period, up 11.48 percent from the previous quarter.

Their combined net income is likely to reach 22.3 trillion won for the first quarter, up 7.16 percent from three months earlier, the report added.

The improved earnings outlook came as global economic uncertainties abated amid a wave of optimism over China, Korea’s largest trading partner.

China, the world’s second-largest economy, posted a trade surplus of $23.1 billion last month, compared with a $19.6 billion surplus in November, the Chinese customs office said Thursday.

Carmakers are projected to perform better despite the strong won against the greenback, with No. 1 automaker Hyundai Motor expecting an operating profit of 2.27 trillion won in the first quarter, up 3.66 percent from three months earlier.

The Korea Electric Power Corporation, the state-run electricity provider, is predicted to turn around by registering an operating profit of 809 billion won in the first quarter on the government’s move to raise electricity fees.

The operating profit of Kumho Petrochemical, the chemicals affiliate of Kumho Asiana Group, is also expected to advance 73.9 percent to 91.2 billion won.

Doosan Infracore, Korea’s leading construction equipment maker, is likely to see its operating profit grow two-fold to 155.8 billion won. Yonhap