Corporate sales rebound, profit margin grows in Q1 amid pandemic

SEOUL, June 17 (Yonhap) — South Korean companies saw their profitability continue their growth in the first quarter, with their sales rebounding from the fallout of the COVID-19 pandemic, central bank data showed Thursday.

The ratio of operating profit to sales of firms in the country reached 6.4 percent in the first quarter, up from 4.2 percent tallied a year ago, according to the data by the Bank of Korea (BOK).

At the same time, the pretax net profit margin of South Korean companies rose on-year to 7.9 percent from 4.4 percent.

Their sales rose 7.4 percent on-year in the first quarter, compared with a 1.9 percent decline a year ago.

By sector, manufacturing firms posted a 10.4 percent on-year jump in first-quarter sales, with their ratio of operating profit to sales widening to 6.7 percent.

Non-manufacturers’ sales also rose 3.3 percent on-year in the first quarter, with their operating profit margin gaining 6.1 percent.

Despite the growth in their sales, the financial health of local companies slightly fell in the first quarter, with their debt to equity ratio rising to 89.4 percent from 86.1 percent.

Corporate sales rebound, profit margin grows in Q1 amid pandemic

kdh@yna.co.kr
(END)

News Related

OTHER NEWS

South Korea's inflation quickens as central bank mulls rate hike

Consumer prices rose 2.6 per cent from a year earlier, accelerating from a 2.4 per cent pace the prior month. (Bloomberg) – South Korea’s inflation unexpectedly climbed in July as ... Read more »

S. Korean businesses wary of double taxation due to EU, US carbon border taxes

The EU’s charge of $50 per ton of carbon dioxide emissions would cost South Korea’s exports $3.2 billion annually. South Korea's businesses complained that the EU’s carbon border tax would ... Read more »

Kolon Industries Q2 net profit up 357.6 pct. to 77.7 bln won

SEOUL, Aug. 3 (Yonhap) — Kolon Industries Inc. on Tuesday reported its second-quarter net income of 77.7 billion won (US$67.5 million), up 357.6 percent from a year earlier. The company ... Read more »

'Too much risky lending': Reserve Bank tightens lending rules and develops new restriction

The Reserve Bank is to further restrict lending as it develops a new tool tying debt to income as it warned of a “problem” of too much risky lending. On ... Read more »

Top headlines in major S. Korean newspapers

SEOUL, Aug. 3 (Yonhap) — The following are the top headlines in major South Korean newspapers on Aug. 3. Korean-language dailies— Name of new ‘God of Vault’ is Shin Jae-hwan ... Read more »

US manufacturing growth slows sharply in July: Survey

Its manufacturing index fell 1.1 points to 59.5 per cent, the lowest level since January. WASHINGTON (AFP) – US factory activity slowed sharply in July amid ongoing supply shortages and ... Read more »

Kia's July sales rise 8.7 pct on overseas demand

SEOUL, Aug. 2 (Yonhap) — Kia Corp., South Korea’s second-largest automaker, said Monday its sales rose 8.7 percent last month from a year earlier on strong overseas demand for its ... Read more »

Korea Investment Holdings Q2 net profit down 21.7 pct. to 301.1 bln won

SEOUL, Aug. 2 (Yonhap) — Korea Investment Holdings Co. on Monday reported its second-quarter net income of 301.1 billion won (US$261.6 million), down 21.7 percent from a year earlier. Operating ... Read more »

Renault Samsung's July sales up 24 pct on robust exports

SEOUL, Aug. 2 (Yonhap) — Renault Samsung Motors Corp. said Monday its sales rose 24 percent last month from a year earlier on strong exports of its SUV models. The ... Read more »

Crude oil retreats as investors weigh Delta, Iranian tensions

Oil has risen every month this year apart from March as the global recovery from the pandemic stoked consumption. SINGAPORE (BLOOMBERG) – Oil fell after four monthly gains as data ... Read more »

Bitcoin reverses weekend rally to drop below US$40,000

Bitcoin fell as much as 4.9 per cent and was trading at US$39,790 before noon in Hong Kong. HONG KONG (BLOOMBERG) – Bitcoin retreated Monday (August 2) back below US$40,000 ... Read more »

Former World Bank supremo Ian Goldin warns against China ‘sabre-rattling'

The existential threats the world faces cannot be solved without China, the former vice-president of the World Bank warns, as a threat of a cold war between the West and ... Read more »

No. of households with minors falls below 5 mln in 2019: data

SEOUL, Aug. 2 (Yonhap) — The number of households with children under 18 years old fell below 5 million for the first time in 2019 amid a chronically low birthrate, ... Read more »

China factory activity growth slips to 15-month low in July

China’s economy has faced new challenges in recent months such as higher raw material costs. BEIJING (REUTERS) – China’s factory activity growth slipped sharply in July as demand contracted for ... Read more »

S. Korea to release 80,000 tons of rice in Aug. to cope with supply shortages

SEOUL, Aug. 2 (Yonhap) — South Korea said Monday it plans to release 80,000 tons of rice into the market this month in a bid to deal with supply shortages ... Read more »

Korea Aerospace wins US$78 mln trainer jet deal from Thailand

SEOUL, Aug. 2 (Yonhap) — Korea Aerospace Industries Co. (KAI), South Korea’s sole aircraft manufacturer, said Monday it has received a US$78 million deal to supply trainer jets to Thailand. ... Read more »

Number of seniors living alone soars 36 pct over 5 years

SEJONG, Aug. 2 (Yonhap) — The number of seniors living alone has surged nearly 36 percent over the last five years amid the country’s rapid population aging, data showed Monday. ... Read more »

New unemployment data may seal next interest rate move

Labour data due this Wednesday will confirm whether unemployment has continued to fall. If it has, that will further strengthen the odds on the official cash rate being hiked by ... Read more »

Amazon sales growth falls short of analysts' forecast as Bezos exits as CEO

While figures for the second quarter, the final with Jeff Bezos as CEO, is a 27 percent increase from the same period last year, it was a slowdown from the ... Read more »

South Korea July exports jump to record though growth pace slows

Exports rose 29.6 per cent in July from the same month a year earlier to US$55.43 billion. SEOUL (REUTERS) – South Korean exports jumped to a record high in July ... Read more »

The US cruise industry stages a comeback

Cruise companies restarted operations in Europe and Asia late last year. FLORIDA (NYT) – Nothing quite demonstrated the horrors of the coronavirus contagion in the early stages of the pandemic ... Read more »

Animal welfare law expected to cut California's pork supply, increase its bacon prices

Californians may need to pay 60% more for bacon. Only four percent of US hog producers say they can comply with an animal welfare law to be enforced by California ... Read more »

July exports set fresh high on chips, autos

In this July 1 file photo, containers are piled at the Port of Busan. Yonhap South Korea’s exports jumped 29.6 percent on-year in July to a record high, extending their ... Read more »

Amazon fined record-breaking $887 million by EU over privacy law breach

The fine on Amazon was the largest in the law’s three-year history. Amazon faces a record-breaking $887 million (€746 million) fine for violating the European Union's signature privacy law, known ... Read more »

Olympic merchandise selling briskly in Japan amid risks of COVID infections

According to a store in Osaka, keyrings with pictograms, especially of basketball and judo, are among the most popular goods, as performers posing to match the pictograms during the opening ... Read more »

UAE's incinerator project to burn two-thirds of trash to neutralize carbon neutrality goals

The project will potentially make it harder for the UAE to reach carbon neutrality by 2050, as burning trash creates carbon emissions. The UAE is constructing a $1.1 billion waste-to-energy ... Read more »

Exports grow for 9th month on chips, autos

By Kang Yoon-seung SEOUL, Aug. 1 (Yonhap) — South Korea’s exports jumped 29.6 percent on-year in July to extend their gains to a ninth consecutive month as the global economy ... Read more »

Victoria's Secret owner vows to strengthen sexual harassment policy in lawsuit settlement

Victoria’s Secret and Bath & Body Works will each invest $45 million over at least five years to fund the changes. Victoria’s Secret owner L Brands Inc. agreed to a ... Read more »

(URGENT) S. Korea's exports soar 29.6 pct on-year to US$55.4 bln in July

(END) Read more »

Nine firms submit letters of intent to acquire SsangYong Motor

SsangYong did not divulge the names of the nine firms due to the confidentiality agreement with the potential investors. Nine companies have submitted letters of intent to acquire SsangYong Motor ... Read more »

Hotel Shilla posts 12 billion won net profit in Q2

The hotel’s group’s operating profit surpassed estimates by 12.2 percent. Hotel Shilla Co. reported a second-quarter net profit of 12 billion won, swinging last year's loss of 67.7 billion. The ... Read more »

Korea's economy grows 0.7% in Q2

gettyimagesbank South Korea’s economy grew at a solid pace in the second quarter and is on track for a 4 percent expansion this year estimated by the central bank thanks ... Read more »

Stagflation concerns return to haunt financial markets

gettyimagesbank Stagflation abroad emerging as new risk factor for Korean economy By Yoon Ja-young The spread of the Delta variant of COVID-19, coupled with inflationary pressure, have led to concerns ... Read more »

Finance chief again warns of housing bubble

Finance Minister Hong Nam-ki / Yonhap South Korea’s top economic policymaker on Wednesday warned of a housing bubble amid a looming interest rate hike, and vowed to increase the housing ... Read more »

Despite Delta variant, BOK remains positive for 4% growth

Park Yang-su, head of the economic statistics department at the Bank of Korea (BOK), gives a briefing at the bank headquarters in Seoul, Tuesday. Yonhap ‘3Q contraction concerns overblown, as ... Read more »

Exports up 32.8% in first 20 days of July

gettyimagesbank South Korea’s exports rose 32.8 percent on-year in the first 20 days of July on the back of robust demand for chips, autos and petroleum products, customs data showed ... Read more »

Streets of 'K-beauty mecca' Myeongdong remain empty amid pandemic

A street in Seoul’s Myeongdong, a popular destination for young people and tourists before the COVID-19 pandemic, is almost empty, July 18. Yonhap It’s time to get ready for the ... Read more »

How will delta variant affect future course of US dollar?

FRB normalization, delta variant concerns caused dollar to appreciate since June By Stephen Lee Stephen Lee is the chief economist at Meritz Securities, Seoul. Courtesy of Stephen Lee The DXY ... Read more »

4th COVID-19 wave threatens Korean economy

gettyimagesbank Experts remain divergent on economic prospect for H2 By Anna J. Park Despite the growing vaccination rate in South Korea, the country’s economic growth is widely expected to be ... Read more »

Number of discouraged workers hits fresh high in June

gettyimagesbank The number of discouraged workers in South Korea hit a new monthly high in June amid the prolonged coronavirus pandemic, government data showed Monday. Asia’s fourth-largest economy had 583,000 ... Read more »