S.Korean companies post biggest fall in revenue in 13 years

Revenue among South Korean companies posted the biggest fall in 13 years in the July-September quarter amid sagging exports and weak private consumption, central bank data showed on Thursday.

Sales in local businesses declined 4.8 percent in the September quarter compared with a year earlier, according to the Bank of Korea (BOK) poll of 3,062 companies subject to external audit. Among them, 84 percent responded to the survey.

It marked the fastest reduction since the third quarter of 2003 as weak exports and sluggish domestic demand weighed down on business activity.

The prolonged low crude oil prices dragged down revenue in oil refiners and chemical companies, while the discontinuation of Samsung Electronics Galaxy Note 7 smartphone hit hard the electronics sector.

Revenue among manufacturers tumbled 6.1 percent in the third quarter from a year ago, with sales for non-manufacturers sliding 2.9 percent.

Corporate profitability was enhanced. The ratio of operating profit to revenue increased 5.7 percent in the cited period, with the figures for manufacturers and non-manufacturers rising 5.9 percent and 5.5 percent respectively.

Financial soundness got better given that the debt ratio of local companies averaged 91.8 percent as of end-September, down 2.8 percentage points from three months earlier. Enditem