Samsung C&T Announces Q2 2018 Results
– Consolidated revenue of KRW 7.928 trillion with record quarterly operating profit of KRW 378 billion in 2Q 2018
– Profitability improvement in the construction business and stable operation of trading unit are the main driving forces in the highest-ever quarterly operating profit
Samsung C&T on July 25 posted KRW 7.928 trillion in consolidated revenue and KRW 378 billion in operating profit for the second quarter of 2018. Its operating profit is the highest-ever for the company, reflecting the firm’s competitiveness going from strength to strength.
The consolidated revenue marked 8% year-on-year growth while the operating profit jumped by 51% during the same period, leading to improved net profit of KRW 343 billion, up 212% from KRW 110 billion in 2Q 2017. Improved profitability in the construction businesses both home and away as well as increase in commodity trade volumes coupled with a surge in fuel prices have led the strong performance.
Samsung C&T intends to continue its focus on enhancing competitiveness and improved profitability. The company expects to continue concrete and substantial growth.
Trading & Investment Group
The T&I Group posted KRW 3.547 trillion in revenue and KRW 57 billion in operating profit. This is an 18%, or KRW 543 billion, rise in revenue from KRW 3 trillion in 2Q of 2017, and a 24%, or KRW 11 billion, increase in year-on-year operating profit from KRW 46 billion.
The increase in global trade volume has led the increased numbers, with oil and other commodity price hikes contributing to the operating profit increase.
Engineering & Construction Group
The E&C Group posted KRW 3.133 trillion in revenue, down 1%, or KRW30 billion, compared to 2Q 2017. Its operating profit marked KRW 243 billion, some 65%, or KRW95 billion, rise from the same period last year.
While the revenue is stable, profitability enhancement at both home and away has resulted in the rise in operating profit.
The Fashion Group posted KRW 416 billion in revenue and KRW 6 billion in operating profit, which is a 4%, or KRW 15 billion, year-on-year revenue growth from KRW 401 billion in 2Q of 2017. Its operating profit slid by 40%, or KRW 4 billion, from KRW 10 billion during the same period.
While there was an increase in sales volume, investment in sports marketing has brought a slight decrease in operating profit. However, the unit managed to improve its results after posting KRW 400 million in operating loss in 1Q 2018.
The Resort Group posted KRW 707 billion in revenue, up 2.8%, or KRW 19 billion, from KRW 688 billion in 2Q 2017. Its operating profit marked 60 billion won, a 10%, or KRW 7 billion, decrease from KRW 67 billion of the same period last year.
While the food and beverage business saw partial rise in revenue, the abnormally volatile weather including high precipitation has resulted in the downturn of operating profit.