Samsung C&T Posts FY 2018 Earnings:
Operating Profit Surpasses KRW 1 tn
Samsung C&T posted KRW 31.156 tn in revenue and KRW 1.104 tn in operating profit for the year 2018. The achievement was made possible through execution of the Company’s strategy to improve its business fundamentals and to achieve growth through profitability.
※ FY 2017: revenue KRW 29.279 tn, operating profit KRW 881 bn
The company recorded KRW 7.971 tn in revenue and KRW 243 bn in operating profit in the fourth quarter of 2018, maintaining the trend of steady profits from the first 3 quarters of the year.
※ Q1~Q3 operating profit: KRW 209 bn (Q1), KRW 378 bn (Q2), KRW 274 bn (Q3)
For 2019, Samsung C&T set its target revenue at KRW 31.5 tn, and plans to continue to pursue sound management for creating profit amid uncertainties in the business environment.
FY 2018 Earnings
Revenue for 2018 was KRW 31.156 tn, an increase by 6.4%, or KRW 1.877 tn, from KRW 29.279 tn recorded in 2017. Operating profit was KRW 1.104 tn, up by 25.3%, or KRW 223 bn, from KRW 881 bn.
Revenue growth was driven by strong performance in all four business groups, an example being the increase in trading volume at the Trading & Investment Group. Operating profit grew on the back of improved profitability in the E&C Group.
Engineering & Construction Group
The E&C Group recorded KRW 12.119 tn in revenue, an increase by 1.1%, or KRW 136 bn, from KRW 11.983 tn in 2017. Operating profit was KRW 773 bn, a jump by 54.3%, or KRW 272 bn, from KRW 501 bn. New orders marked KRW 10.668 tn to achieve 95% of the annual target of KRW 11.2 tn.
Operating profit grew significantly as projects pursued in line with the E&C Group’s strategy to focus on profitability began generating revenue.
Trading & Investment Group
The T&I Group posted KRW 14.113 tn in revenue, up 12.4%, or KRW 1.558 tn, from KRW 12.555 in 2017. Operating profit was KRW 146 bn, down 2.7%, or KRW 4 bn, from KRW 150 bn.
The growth in revenue was buoyed by strong performance in chemicals and steel trading, while operating profit saw a slight decline due to a one-off loss in Q4 from one of the T&I Group’s organizing projects.
The Fashion Group posted KRW 1.759 tn in revenue, up 0.6%, or KRW 10 bn, from KRW 1.749 tn in 2017. Operating profit was KRW 25 bn, down 24.2%, or KRW 8 bn, from KRW 33 bn.
The Fashion Group’s revenue maintained an upward trend, thanks to efforts to strengthen the competitiveness of its clothing brands. Operating profit fell due to sluggish outerwear sales amid higher winter temperatures.
The Resort Group posted KRW 2.624 tn in revenue, up 3.6%, or KRW 92 bn, from KRW 2.532 tn in 2017. Operating profit was KRW 147 bn, down 18.3%, or KRW 33 bn, from KRW 180 bn.
The increase in revenue was backed by growth in the food & beverage and food ingredient businesses, while operating profit fell due to increased costs.
The Company’s revenue was KRW 7.971 tn, a YoY increase by 3%, or KRW 206 bn, from KRW 7.765 tn in 2017. Operating profit was KRW 243 bn, a YoY decrease by 14%, or 40 bn, from KRW 283 bn.
Revenue growth was backed by smooth progress in the E&C Group’s key projects and the Fashion Group’s business entering the high season. Regarding operating profit, despite high-season growth from the Fashion Group, the overall figure fell due to cost increases in some of the E&C Group’s projects, and a one-off loss from the T&I Group.
The E&C Group’s revenue was KRW 3.167 tn, a YoY increase by 6%, or KRW 184 bn, from KRW 2.983 tn in 2017. Operating profit was KRW 168 bn, a YoY increase by 1%, or KRW 1 bn, from KRW 167 bn.
The T&I Group posted KRW 3.447 tn in revenue, a YoY decline by 1%, or 40 bn, from KRW 3.487 tn in 2017. Operating profit was negative KRW 6 bn, which was a switch to loss from 15 bn in 2017.
The Fashion Group posted KRW 495 bn in revenue, a YoY decline by 3%, or KRW 14 bn, from KRW 509 bn. Operating profit was KRW 38 bn, similar to the previous year (KRW 38 bn).
The Resort Group posted KRW 684 bn in revenue, a YoY increase by 10%, or KRW 60 bn, from KRW 624 bn. Operating profit was KRW 43 bn, a YoY growth by 59%, or KRW 16 bn, from KRW 27 bn.
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