Corporate sales growth slows, but profitability improves in Q3

Korean firms-Q3 earnings

Corporate sales growth slows, but profitability improves in Q3

SEOUL, Dec. 17 (Yonhap) -- South Korean companies' sales growth slowed from three months earlier in the third quarter partly due to a slump in the chipmaking and petrochemical sectors, but their profitability improved, central bank data showed Tuesday.

Corporate sales grew 4.3 percent on-year in the July-September period, slowing from the 5.3 percent on-year gain the previous quarter, according to the data compiled by the Bank of Korea.

The third-quarter figure, however, marks a turnaround from a 5.2 percent on-year decline in the same period last year.

The data is based on a review of 23,137 companies that are subject to external audits.

The firms' profitability improved on the back of the weakening won.

Their operating profit-to-sales ratio stood at 5.8 percent in the third quarter, compared with a 4 percent advance a year earlier. But the third-quarter profitability slowed from the previous quarter's 6.2 percent.

The firms' average debt-to-equity ratio came to 87.8 percent in the third quarter, down from 88.9 percent a year ago, the data showed.

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