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[Apha Biz=(Chicago) Reporter Paul Lee] Following LG Electronics on the previous day, Samsung Electronics also posted "surprise results" on the 11th, raising expectations for an economic recovery that will lead to the second half of this year and the first half of next year.
Hyundai Motor Co. and Kia Motors Corp., the leaders in the auto industry, which serve as a prop for exports, are also expected to achieve all-time highs in the third quarter following the first half of this year.
Manufacturing Big Three (Samsung Electronics, LG Electronics, and Hyundai Motor), which serve as exports and economic support, signaled a recovery at the same time.
However, some predict that it is still too early to be optimistic about a "high and low" economic recovery as interest rates and oil prices are expected to rise further due to the sudden variable of the recent armed conflict between Israeli-Palestinian militants in the U.S. government's monetary tightening policy.
According to financial information provider FnGuide on the 12th, Hyundai Motor's third-quarter operating profit estimate is estimated at 3.5 trillion won and Kia's 2.8 trillion won.
This is a 133% and 260% jump from the same period last year, respectively.
Last year, its performance was relatively sluggish, reflecting Hyundai Motor's quality costs of KRW 1.36 trillion and Kia's KRW 1.54 trillion, respectively. However, even considering this, this year's performance is expected to exceed last year's.
According to the Korea Automobile Manufacturers Association, the exports of five finished cars from January to September this year amounted to 52.076 billion dollars (69.77 trillion won), up 35.8% from the same period last year.
Considering that the total annual exports of cars amounted to $54.067 billion last year, the record high is likely to be renewed.
The background of the positive performance in the first half of this year is not only the improvement of the business environment such as the expansion of high value-added models, but also the high exchange rate effect. Hyundai Motors saw operating profit of 958 billion won and Kia 651 billion won in the first half of this year alone.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
