`Best against Worst`, Samsung Electronics and Hyundai Motor, which represent Korea in the global IT and automotive markets, were mixed in the first quarter. Samsung Electronics recorded a record operating profit of 15.6 trillion won in the quarter, while Hyundai Motor recorded the lowest quarterly performance since 2010 with a half-year decline in operating profit compared to a year earlier.

According to the industry on April 26, Samsung Electronics recorded KRW 60.563 trillion in sales and operating profit of KRW 15.64 trillion in the first quarter consolidated financial statement. After the second quarter of last year, the company continued to record an operating profit for the fourth consecutive quarter.

It is thanks to the memory semiconductor quandary. The operating profit of the semiconductor division, which was KRW 6.31 trillion in the first quarter of last year, soared 83.0% to KRW 11.55 trillion in one year.

On the other hand Hyundai Motor`s Q1 operating profit fell short of the previous year`s record, or the record low. Hyundai Motor recorded sales of KRW 22.343 trillion and operating profit of KRW 68.1 trillion in the first quarter. This is the worst quarterly record since K-IFRS consolidated financial statements were released in 2010. Sales and operating profit fell 4% and 45.5%, respectively. Operating profit fell below KRW 1 trillion for two consecutive quarters after the fourth quarter of last year due to sluggish auto sales. Earlier this year, partial strikes and a sharp drop in sales in China and the US affected earnings.

However, the prospects for both companies are the exact opposite. Samsung Electronics forecasts that it will not be able to improve earnings in 1Q due to continued weak display prices and lower profitability of its wireless (smartphone, etc.) business. Memory semiconductor prices are also expected to decline from next year.

Meanwhile, Hyundai Motor said, "The sales of newly launched new cars are on the rise and sales are expected to increase as new models are expected to be launched in major markets around the world."

In terms of management, Hyundai Motor has been preparing for the future car by presenting its goal of launching 38 models of eco-friendly cars by 2025 under the leadership of Vice Chairman Ji-sung. If the merger between Hyundai Mobis and Hyundai Glovis is completed on May 29, the company will be able to reduce the burden on the government and reduce the burden on the government.

Samsung Electronics is under pressure to improve the government`s governance structure. After Lee Jae-yong`s release in February, he has recently made overseas field trips, but he did not return to full-scale management due to public opinion. Synergies in the automotive electronics parts business, a new growth engine, will also require more time.

A business expert said, "Since the difference between the two companies has been so large in recent 5 years, it is a corporate world that does not know how to change after five years."

By Park Jung Il & Kim Yang Hyuk comja77@


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