Samsung C&T FY 2019 & Q4 2019 earnings

Samsung C&T posted KRW 30.8tn in revenue and KRW 867bn in operating profit for FY 2019. It also posted KRW 7.7tn in Q4 2019 revenue and KRW 325bn in Q4 2019 operating profit, continuing the upward trend in quarterly performance.

Efforts to improve financial structure, leading to a reduction total debt by 24.3% to KRW 3.4tn and a reduction debt to equity ratio to 72% from 88% in FY 2018. Meanwhile, the company set its revenue target for FY 2020 at KRW 30.3tn in revenue and 11.1tn in new orders.

FY 2019 Earnings

Overall Performance

Revenue: KRW 30.762tn, YoY decrease by KRW 394bn (1.3%↓)

Operating Profit: KRW 867bn, YoY decrease by KRW 237bn (21.5%↓)

Revenue was similar to that of FY 2018 but operating profit decreased YoY due to one-time costs (E&C) and weak commodities prices (T&I).

Engineering & Construction Group (E&C Group)

Revenue: KRW 11.652tn, YoY decrease by KRW 467bn (3.9%↓)

Operating Profit: KRW 540bn, YoY decrease by KRW 233bn (30.1%↓)

New Orders: KRW 10.7tn, 91.5% achievement of target (KRW 11.7tn)

Revenue fell slightly YoY due to the completion of some ongoing projects, while operating profit also fell due to reflection of one-time costs. New orders met 91.5% of the annual target, contributed by KRW 6.3tn worth of orders won in Q4.

Trading & Investment Group (T&I Group)

Revenue: KRW 13.862tn, YoY decrease by KRW 251bn (1.8%↓)

Operating Profit: KRW 106bn, YoY decrease by KRW 40bn (27.4%↓)

Revenue and operating profit in trading fell due to unfavorable market conditions e.g. weak oil prices, increased volatility in commodities prices, etc.

Fashion Group

Revenue: KRW 1.732tn, YoY decrease by KRW 27bn (1.5%↓)

Operating Profit: KRW 32bn, YoY increase by KRW 7bn (28.0%↑)

While revenue dropped slightly YoY, operating profit grew 28% as a result of continued efforts to improve profitability.

Resort Group

Revenue: KRW 2.814tn, YoY increase KRW 190bn (7.2%↑)

Operating Profit: KRW 143bn, YoY decrease 4bn (2.7%↓)

Revenue grew on the back of an increase in amusement part/golf course visitors and strong performance in food materials, while operating profit fell due increased costs.

Q4 2019 Performance

Overall Performance

Revenue: KRW 7.698tn, YoY decrease by KRW 273bn (3.4%↓)

Operating Profit: KRW 325bn, YoY increase by KRW 82bn (33.7%↑)

Engineering & Construction Group

Revenue: KRW 2.737tn, YoY decrease by KRW 430bn (13.6%↓)

Operating Profit: KRW 136bn, YoY decrease by KRW 32bn (19.0%↓)

Trading & Investment Group

Revenue: KRW 3.440tn, YoY decrease by KRW 7bn (0.2%↓)

Operating Profit: KRW 20bn, switch to profit from KRW 6bn loss in previous year

Fashion Group

Revenue: KRW 485bn, YoY decrease by KRW 10bn (2.0%↓)

Operating Profit: KRW 30bn, YoY decrease by KRW 8bn (21.1%↓)

Resort Group

Revenue: KRW 485bn, YoY decrease by KRW 10bn (2.0%↓)

Operating Profit: KRW 30bn, YoY decrease by KRW 8bn (21.1%↓)

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