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World Business Quick Take

■ Coal
China output slows in Q1
The value of output by China's 31 state-run coal companies rose 49.7 percent on-year in the first quarter of this year to 55.61 billion yuan (US$6.7 billion), the government said yesterday. The rate of increase for the first quarter was below the 53.7 percent rise in the first two months of the year, suggesting efforts to slow growth of some fast growing industries is taking effect, the official Xinhua News Agency reported. Rising prices boosted first-quarter profits for the sector to 8.29 billion yuan, 1.3 times higher than in the same period of last year, it said.

■ Automobiles
Profits fall at BMW
Automaker BMW reported its first drop in profit in nearly two years yesterday, blaming a weaker dollar and higher steel prices, but said its outlook for this year remained good. The Munich-based maker of sporty and luxury cars earned 519 million euros (US$667.6 million), or 0.77 euros a share, in January to March, compared with 523 million euros, or 0.78 euros a share, in the period a year ago. Sales were down 4 percent to 10.36 billion euros from 10.8 billion euros. Shares of BMW were up 0.5 percent to 33.15 euros in morning trading yesterday in Frankfurt.

■ Earnings
Profits up at Japanese firms
Publicly traded Japanese companies increased their profits considerably in the past business year, the economic newspaper Nihon Keizai Shimbun reported yesterday. For the second straight year, the companies earned record pretax profits of an average of 20 percent. That figure is derived from balance sheets submitted on March 31 by 195 firms. The companies make up 40 percent of Japanese stock market capitalization. The higher price for raw materials is one of the reasons for the improved earnings, as Japan's steel industry finished the 2004 to 2005 business year with record profits. In addition, some companies improved their management structures through reorganization. In the current business year, which ends next March 31 companies expect profit growth to continue but at a slower pace, falling back to single digits because more expensive raw materials are now affecting production costs. The strong Japanese yen could also have a negative impact on exports.

■ Banking
Won's rise cuts into profits
Foreign banks operating in South Korea saw their earnings fall sharply last year, mainly due to the appreciation of the won, the financial regulator said yesterday. The 37 foreign banks reported a combined net profit of 316.3 billion won (US$316 million) last year, down 19.7 percent from 2003, the Financial Supervisory Service (FSS) said. "The won's appreciation against the dollar led to losses in their foreign exchange assets and currency derivatives," an FSS official said. The South Korean currency rose more than 15 percent against the dollar last year and has continued to firm so far this year. Of the 37 foreign banks, 31 were profitable last year, while the remaining six reported losses. Global banking giant HSBC topped the list with a 81.5 billion won net profit, followed by Standard Chartered Bank on 35 billion won and Deutsche Bank with 33.8 billion won. The combined assets of the 37 banks were worth 98.2 trillion won at the end of last year, up 25.9 percent from 2003 and accounting for 7.9 percent of South Korea's banking market.

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