Samsung C&T Announces Q1 2018 Results
Samsung C&T Corporation posted its earnings for the first quarter of 2018 on April 25, 2018. Overall, the company recorded KRW 7.48 trillion in consolidated revenue and KRW 209 billion in operating profit, which are year-on-year improvements of 11.5% and 52.6% respectively. Net profit was KRW 363 billion, marking a year-on-year increase of 93%, up from KRW 188 billion.
Samsung C&T’s strong performance in the Engineering & Construction Group’s building projects, an increase in trade volume from the Trading & Investment Group, and an increase in production volume at Biologics’ Plant #2 drove the revenue growth.
Thanks to the realization of revenue from the E&C Group’s high-profit projects and strong performance from the T&I Group’s trading operations, operating profit exceeded KRW 200 billion for the fourth consecutive quarter. Net profit recorded a year-on-year growth on the back of increased profit from dividends.
In the second quarter, the company will build on the overall upward trend to continue growth by enhancing its competitiveness and efficiency.
Engineering & Construction Group
The E&C Group posted KRW 3.0 trillion in revenue and KRW 158 billion in operating profit for the first quarter. This was a year-on-year increase in revenue of 10.5%, or KRW 284 billion, up from KRW 2.71 trillion in Q1 2017. Operating profit increased by 73.6%, or KRW 67 billion, from KRW 91 billion in Q1 2017.
Building and other projects were the main source of revenue growth, while operating profit grew significantly thanks to revenue from high-profit projects.
Trading & Investment Group
The T&I Group posted KRW 3.33 trillion in revenue and KRW 58 billion in operating profit for the first quarter. This is a year-on-year growth in revenue of 16.0%, or KRW 460 billion, up from KRW 2.87 trillion in Q1 2017. Operating profit increased by 34.9%, or KRW 15 billion, up from KRW 43 billion in Q1 2017.
Rising commodity prices drove revenue, while strong performance in trading and commissions from organizing projects were the main sources of the increase in operating profit.
The Fashion Group posted KRW 460 billion in revenue and KRW 400 million in operating loss for the first quarter. Year-on-year this represents 1.1%, or a fall of KRW 5 billion, down from KRW 465 billion in Q1 2017. Operating losses dropped from KRW 1 billion in Q1 2017.
While both revenue and operating profit decreased from the previous quarter due to seasonality, year-on-year operating profit improved thanks to brand restructuring and effort to improve profitability.
The Resort Group posted KRW 556 billion in revenue and KRW 8 billion in operating loss for the first quarter. Year-on-year this represents a 1.1% revenue growth, or KRW 6 billion, up from 550 billion KRW in Q1 2017. Operating profit fell by KRW 20 billion from KRW 12 billion KRW in Q1 2017.
Revenue increased thanks to positive performance from the overseas food & beverage business, but operating profit fell due to a combination of rising costs and abnormal weather in Korea.