The operating margin on sales, which shows manufacturing's profitability in the second quarter this year, was tallied at 24%, the Bank of Korea said on the 9th. It is the highest since related statistics were compiled in the first quarter of 2015. However, excluding Samsung Electronics and SK hynix, the operating margin is 7.2%, less than half. The two companies account for 70% of manufacturing operating profit. Analysts say the concentration in large semiconductor companies is deepening.
According to the "second-quarter corporate management analysis results" released by the Bank of Korea that day, the operating margin in machinery and electrical and electronics within manufacturing was 43%, about six times the same period a year earlier (7.4%). The Bank of Korea said, "Because of the semiconductor industry's characteristics of a high fixed-cost ratio, the increase in operating profit expanded much more than sales."
The sales growth rate, which indicates manufacturing's growth potential, also set a record high at 39.6%. However, excluding Samsung Electronics and SK hynix, it was tallied at 14%, less than half. The two companies' sales pulled up the overall figure. In particular, machinery and electrical and electronics, the semiconductor institutional sector, recorded 88.5%, up 36.4 percentage points from the previous quarter (52.1%).
The operating margin in non-manufacturing was 5%, down from the same period a year earlier (5.1%). As international oil prices rose due to the Middle East war, the transportation industry fell to 4.8% from 7% in the same period. The non-manufacturing sales growth rate rose to 9.7% from 3.7%, but it remains low compared with manufacturing.
However, the Bank of Korea analyzed that the gap between manufacturing and non-manufacturing is not large. Even excluding Samsung Electronics and SK hynix from manufacturing, growth is improving. A Bank of Korea official said, "The growth rate of sales in non-manufacturing is not a low figure," adding, "Excluding Samsung Electronics and SK hynix, the gap between manufacturing (14%) and non-manufacturing (9.7%) has narrowed."
Across all industries, including manufacturing, the operating margin was 16.9% and the sales growth rate was 26.7%, both all-time highs. However, excluding Samsung Electronics and SK hynix, they decrease to 6.2% and 12%, respectively.
Meanwhile, the debt-to-equity ratio, which shows corporations' stability, improved to 84.5% from 87% in the previous quarter. Dependence on borrowing fund also fell to 22.8% from 23.9% over the same period.