Korean carmakers, oil refiners, expect strong 1st quarter results

Strong 1st quarter results are predicted for automakers and oil refineries in South Korea due to rising demand and strong market conditions. In particular, Hyundai Motor Co. is projected to report excellent profits partially due to overseas sales. Analysts report that quarterly sales for Hyundai could rise more than 10%. Kia Motors, Korea’s second largest automaker could reach record sales of 5.9-6.5 trillion won (US$5.3-5.8 billion), up 30%, and operating profits of 490 billion won (US$444.12 million), up 60%. It is reported that the expected sales surge is due to the popularity of the company’s new cars. Meanwhile, oil companies are also expected to report record breaking operating profits – with SK Innovation and S-Oil expected to reach record operating profits of 750 to 850 billion won (US$679.9-770.5 million) and 600 to 700 billion won (US$543.8-634.5 million), respectively. Political unrest in the Middle East and Japan’s Magnitude 9 earthquake in March were the reasons given for their strong first quarter performance. (April 4, 2011)