Samsung C&T Construction Division Q2 Operating Profit 118 Billion Won, Down 58% Year-on-Year

Operating Profit Drops 58% to 118 Billion Won in Q2
Completion of High-Tech Projects Leads to Decline in Earnings

Samsung C&T's construction division saw its operating profit for the second quarter drop by more than half compared to the same period last year, due to a decline in sales in the high-tech sector.

On July 30, Samsung C&T's construction division announced that its sales for the second quarter reached 3.395 trillion won, with an operating profit of 118 billion won. Compared to the same period last year, sales decreased by 30.93% and operating profit declined by 58.3%.

By business segment, sales were as follows: architecture 2.329 trillion won, civil engineering 159 billion won, and plant 907 billion won. Domestic sales amounted to 1.586 trillion won, while overseas sales totaled 1.809 trillion won.

The construction division's order performance for the second quarter was 1.389 trillion won, which was weaker than the previous quarter's 3.4 trillion won. Major projects included Australia's Nawarre BESS (200 billion won), Romania's nuclear power plant Unit 1 facility upgrade (100 billion won), Samsung Electro-Mechanics Philippines P6 (200 billion won), and Samsung Display Cheonan C Line (100 billion won).

Order performance for housing construction rights included Jangwi District 8 (1.2 trillion won), Ulsan Nam-gu B-04 (700 billion won), and Gwangnaru Hyundai remodeling (300 billion won).

Samsung C&T explained, "The completion of large-scale projects, including high-tech, led to a decrease in both sales and operating profit, and marketing expenses in the housing sector also contributed to the decline in operating profit."

Meanwhile, for the second quarter of this year, Samsung C&T's consolidated results were sales of 10.022 trillion won and operating profit of 753 billion won. Compared to the same period last year, sales decreased by 8.9% and operating profit fell by 16.3%.