CEO Score, Survey of Individual Financial Statements of Top 500 Companies Since Q1 2000
Samsung Electronics, 55 Consecutive Quarters of Profit After Q4 2008 Deficit Due to Financial Crisis
Deficit Again from Q4 Last Year to Q2 This Year... Performance Excluding Overseas Sites and Affiliates
Samsung Electronics has been found to have posted losses for three consecutive quarters based on individual financial statements. It recorded losses in the fourth quarter of last year and the first and second quarters of this year. After posting a loss in the fourth quarter of 2008 during the global financial crisis, it had maintained profits for 55 consecutive quarters before recently recording losses for three consecutive quarters. Unlike consolidated financial statements, individual financial statement results exclude the performance of Samsung Electronics' overseas business sites and affiliates such as Samsung Display and Harman.
On the 13th, CEO Score announced the results of an investigation into the individual financial statements of 352 companies that submitted their second-quarter business reports to the Financial Supervisory Service among the top 500 domestic companies. The analysis covered 94 quarters of performance from the first quarter of 2000 to the second quarter of this year.
Samsung Electronics recorded profits for 35 consecutive quarters from the first quarter of 2000 to the third quarter of 2008 based on individual financial statements, but posted an operating loss of 93.7129 billion KRW in the fourth quarter of 2008. This was due to a significant loss in the semiconductor (DS) division as demand decreased amid the global financial crisis. After that, from the first quarter of 2009 to the third quarter of last year (55 quarters), it succeeded in maintaining profits based on individual financial statements, but recorded a loss of 421.436 billion KRW in the fourth quarter of last year. It also posted losses in the first quarter (-390.8761 billion KRW) and second quarter (-369.8103 billion KRW) of this year. This marks three consecutive quarters of losses.
A Samsung Electronics official said, "Samsung Electronics is a global company with a large proportion of operating profit from overseas subsidiaries, and the individual financial statement figures exclude the performance of Samsung Electronics' overseas subsidiaries and affiliates," adding, "The loss in the DS (semiconductor) division had a significant impact."
Besides Samsung Electronics, which broke its record of 55 consecutive quarters of profits, 17 companies (4.8%) also ended their profit streaks. These companies are also analyzed to have posted losses due to the global economic downturn in the second half of last year and the semiconductor market slump. LX Hausys (54 quarters), Hyundai Engineering (53 quarters), and others are representative examples. Additionally, including Samsung Electronics, 60 companies (17%) recorded operating losses for two consecutive quarters. In particular, Hanwha Ocean (11 quarters), Korea Electric Power Corporation (10 quarters), and Korea District Heating Corporation (9 quarters) have not been able to escape the loss cycle for more than two years (8 quarters).
Meanwhile, 10 companies (2.8%) including Hyundai Mobis, SK Telecom, Korea Zinc, and Shinsegae have recorded profits for 94 consecutive quarters since the first quarter of 2000. Including these companies, 69 companies (19.6%) have recorded profits for more than the recent 10 years (40 quarters).
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