[Asia Economy Reporter Kang Nahum] Samsung SDS posted strong earnings in the second quarter of this year, supported by the expansion of cloud migration and rising logistics freight rates.
Samsung SDS announced that its consolidated sales for the second quarter of this year reached 3.2509 trillion KRW, with an operating profit of 224.7 billion KRW. These figures represent increases of 26.7% and 14.2%, respectively, compared to the same period last year.
By business sector, IT services sales amounted to 1.3919 trillion KRW, up 5.5% from the same period last year. The increase in sales was driven by expanded cloud migration, diversification of ERP business industries, expansion of smart factory construction, and growth in the global enterprise mobile management (EMM) solution business.
Sales in the logistics business based on the IT platform recorded 1.859 trillion KRW, a 49.1% increase from the previous year, due to increased IT product cargo volume, rising ocean freight rates, and expansion of external business.
On the conference call, Samsung SDS Vice President Ahn Jung-tae said, "We expect an increase in IT and home appliance cargo volume due to the year-end peak season. We anticipate that the strong ocean freight rates will continue due to a shortage of shipping space and containers, and we plan to expand the Cello Square digital logistics platform business."
Samsung SDS plans to expand its business in the second half of the year focusing on ▲providing advanced enterprise cloud services ▲next-generation ERP-based external business ▲diversification of smart factory business industries ▲promotion of logistics automation in manufacturing plants and distribution centers in the IT sector.
In the logistics sector, the company plans to proactively provide logistics services in preparation for increased cargo volume from clients, while enhancing the Cello Square IT platform and expanding service coverage to international transportation and fulfillment, thereby strengthening highly visible global logistics competitiveness.
Samsung SDS also announced plans to reduce greenhouse gas emissions. Kang Seok-rip, head of Samsung SDS IT Innovation Division, said on the conference call, "We reduced greenhouse gas emissions by 2,400 tons compared to the annual emissions last year. Our target for greenhouse gas emissions by 2030 is 300,000 tons." He added, "We are considering various methods such as using cooling devices in server rooms and natural ventilation for cooling."
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