Earnings predicted to slump in Q3Samsung Electronics is not the only Korean company expected to suffer from a disappointing third-quarter performance.
According to FnGuide, a financial information provider, the combined operating profits of 165 major listed companies for the July-September period is expected to amount to 29.5 trillion won ($27.9 billion), 6.1 percent less than last month’s outlook of 31.4 trillion won.
Samsung Electronics was the largest reason behind the lower operating profits of the listed companies. The Korean tech company’s operating profit, which accounts for 13 percent of the Kospi’s entire market capitalization, was downsized 22.5 percent from last month’s projection of 7.8 trillion won to 5.5 trillion won.
FnGuide said that when Samsung Electronics’ smaller operating profit was excluded, the forecast for the 164 companies’ combined operating profit fell 1.3 percent compared to the projection it made a month ago.
The IT and hardware market is expected to see the biggest drop. The financial information provider estimated that the tech industry will likely see its operating profits tumble more than 36 percent compared to the second quarter.
BY LEE HO-JEONG [email@example.com]