Stronger won fuels fears of earnings misses among Korean exporters
Korea’s leading exporters face a growing risk of missing third-quarter earnings expectations as a sharp appreciation of the won erodes the local-currency value of sales generated in dollars, market analysts said Friday. The currency shift has prompted brokerages to lower their profit estimates for major exporters. A weaker won benefited exporters in the second quarter, when the won-dollar…
Korea's top exporters are bracing for potential earnings shortfalls as the won's sharp rise against the dollar erodes the local value of their dollar-denominated sales, according to market analysts. The shift in currency dynamics has compelled brokerages to revise downward their profit forecasts for key exporters. While the won-dollar exchange rate was at an average of 1,502 won per dollar during the second quarter, it has since declined by 12.7 percent, from 1,549.4 won per dollar at the end of June to 1,352.9 won per dollar at the end of September.
This depreciation, which amplifies the impact of dollar sales on profit margins, has intensified concerns among exporters and could potentially result in earnings missing even the revised consensus estimates. Particularly vulnerable are automakers, who depend heavily on overseas sales. Financial data from FnGuide reveals that analysts are increasingly apprehensive about the prospect of substantial earnings disappointments.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Stronger won fuels fears of earnings misses among Korean exporters koreatimes.co.kr
