First Quarter Operating Profit at 159 Billion Won, Down 53%
Sales and Operating Profit Decline Due to Decreased High-Tech Orders
Samsung C&T's construction division saw its operating profit for the first quarter cut in half compared to the same period last year. This was due to a decrease in volume in the high-tech sector.
On April 30, Samsung C&T's construction division announced that it recorded sales of 3.62 trillion won and operating profit of 159 billion won in the first quarter of this year. Compared to the same period last year, sales decreased by 35.17%, and operating profit dropped by 52.81%.
Sales by business segment were as follows: building construction 2.729 trillion won, civil engineering 194 billion won, and plant construction 697 billion won. Domestic sales amounted to 1.855 trillion won, while overseas sales reached 1.765 trillion won.
The construction division's order intake for the first quarter totaled 3.4 trillion won. This included the Al Dhafra gas-fired power plant in Abu Dhabi, United Arab Emirates (600 billion won), Songpa Hanyang 3rd Reconstruction Project (300 billion won), Banghwa 6th District Reconstruction Project (200 billion won), and increased orders for factories and housing in Taylor, Texas, United States (2.3 trillion won), among others.
In April, the company additionally secured contracts for the Nawarre solar energy storage system (ESS) project in Australia (200 billion won) and the equipment improvement project for Unit 1 of a nuclear power plant in Romania (100 billion won).
Housing orders in the first quarter totaled 3.1 trillion won, including the Hannam 4th District (1.6 trillion won), Sinbanpo 4th District (1 trillion won), and Daerim Garak Apartment (500 billion won) redevelopment projects. In April, the company also secured the Jangwi 8th District (1.2 trillion won) and Gwangnaru Hyundai remodeling (200 billion won) projects.
Samsung C&T stated, "Sales and operating profit decreased year-on-year due to the completion of large-scale domestic and overseas projects and a reduction in high-tech orders. However, operating profit increased compared to the previous quarter, thanks to a profitability-focused portfolio and enhanced competitiveness."
Meanwhile, for the first quarter of this year, Samsung C&T's consolidated results were sales of 9.737 trillion won and operating profit of 724 billion won. Compared to the same period last year, sales increased by 9.80% and operating profit rose by 1.68%.
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