(2nd LD) KT&G Q2 net falls 16 pct on strong won
(ATTN: CHANGES headline and lead; REWRITES throughout)
SEOUL, Aug. 5 (Yonhap) -- KT&G Corp., South Korea's dominant tobacco company, said Thursday its second-quarter net profit fell 16 percent from a year earlier due mainly to a strong won.
Net profit for the three months that ended in June fell to 246.4 billion won (US$215 million) from 293 billion won in the same period of last year, the company said in a regulatory filing.
"The won's strength (against the dollar) drove down the dollar-denominated earnings (when converted into the local currency)," a company spokesman said over the phone.
Decreased equity gains from its non-tobacco subsidiary also weighed on the quarterly bottom line, he said.
Operating profit declined 16 percent to 330.14 billion won in the second quarter from 394.12 billion won a year ago. Sales rose 2.1 percent to 1.35 trillion won from 1.32 trillion won during the same period.
KT&G sold 10.34 billion cigarettes in the domestic market in the first three months, down 170 million from a year earlier. It accounted for 64 percent of the domestic cigarette market.
Its overseas sales fell 14 percent on-year to 11.9 billion cigarettes from a year earlier due to weaker demand from the Middle East.
Korea Ginseng Corp. (KGC), a wholly owned unit of the tobacco firm, saw its second-quarter sales fall 6.6 percent on-year to 259.3 billion won, with its operating income plunging 67.5 percent to 6.5 billion won.
KT&G has four tobacco manufacturing plants in South Korea, Russia, Turkey and Indonesia whose combined capacity reached 13.6 billion cigarettes a year as of last year.
(END)
-
Defense chief says N. Korea's hypersonic missile 'unsuccessful' in last-stage glide flight
-
Relax, immerse yourself in scents at Venice Biennale's Korean Pavilion
-
Overdue debut of Korean abstract art pioneer Yoo Young-kuk at Venice Biennale
-
N. Korea has capability to genetically engineer biological military products: U.S. report
-
PPP lawmaker says entire Cabinet should resign over general elections defeat
-
Relax, immerse yourself in scents at Venice Biennale's Korean Pavilion
-
Overdue debut of Korean abstract art pioneer Yoo Young-kuk at Venice Biennale
-
Defense chief says N. Korea's hypersonic missile 'unsuccessful' in last-stage glide flight
-
(LEAD) Yoon vows to improve communication with people after election defeat
-
Yoon presides over emergency meeting on Mideast crisis
-
(4th LD) Finance chiefs of S. Korea, U.S., Japan recognize 'serious' concerns over 'sharp' won, yen depreciation
-
S. Korea to provide 100,000 tons of rice to 11 nations
-
Yoon, Daegu mayor met to discuss post-election matters: sources
-
Facebook page unveils photos of BTS member V in counter-terrorism unit gear
-
S. Korea to provide US$200 million in humanitarian aid to Ukraine this year