A fourth-quarter earnings shock struck a majority of listed companies, with display, steel and chemical sectors seeing downhill outlooks in the first three months of this year as well.

Fifty-one percent of 37 major listed companies that announced their October-December 2012 operating profits so far showed earnings falling far short of market expectations. They include Samsung SDI, Korean Air, Green Cross, Samsung Fine Chemicals, S-Oil, KT, LSIS, LG Electronics, Kia Motors and SK Hynix.

Major IT stocks declined as Apple nosedived and the won strengthened amid a slow season for the IT industry.

Shares sensitive to economic swings such as Hyundai Motor, Kia Motors and S-Oil are unlikely to see profits pick up for the time being as the strong won and the weak yen dealt a blow to their earnings.

Only 11 of them (30 percent) met analysts’ projections within 10 percent margins, while seven (19 percent) including LG Life Sciences and Samsung C&T saw an earnings surprise, posting better results than predicted.

Nothing better is expected to come out of the other companies that are yet to report their fourth-quarter earnings.

Brokerage houses revised down their operating profit estimates for three-fourths of the 72 listed firms set to announce October-December results. They include OCI, Hite Jinro, Dongkuk Steel Mill, Hana Financial, Korea Exchange Bank and Hyundai Development.

Utility, material, consumer goods and energy sectors are believed to be the biggest losers in the last three months of 2012. Only telecommunication service providers saw their earnings outlooks rise 25 percent in the past month.

The wide-ranging earnings shock is weighing on stock prices.

The value of Kia Motors’ shares shed 23 percent over the past month. The carmaker’s fourth-quarter operating profit plummeted 51.1 percent on-year to 404 billion won, worse than market expectations.

Shares of S-Oil, LG Innotek and Korean Air tumbled 22 percent, 17 percent and 12.3 percent, respectively, from the beginning of this year.

Aftershocks will follow through the January-March period, analysts say.

Tongyang Securities’ first-quarter operating profit outlook for listed companies fell 2 percent over the past five weeks, with that for the display industry plunging 52 percent. Those of steel and chemicals also dropped 15 percent and 12 percent, respectively.

Apple’s earnings shock lowered hopes for IT shares and the weak yen took a toll on exporters.

Meanwhile, the Chinese economy is showing signs of recovery, but with Beijing likely to focus more on domestic consumption rather than investment or exports, prospects of Korea’s materials makers aren’t bright.

“Poor fourth-quarter earnings are spilling over to the next quarter, but a turnaround will be possible if the yen’s descent slows and the Lunar New Year holiday helps boost consumption,” said Kwak Byung-ryul, an analyst at Eugene Investment and Securities.

SK Securities, however, noted that expectations are rising for oil refinery, commercial, media, insurance and telecommunication service stocks.

By Kim So-hyun (sophie@heraldcorp.com)