Ssangyong C&E Achieves Sales of 1.6614 Trillion KRW and Operating Profit of 248.7 Billion KRW

Operating Profit Slightly Declines Due to Worsening Cement Division Earnings from Soft Coal Price Increase

Exterior view of Ssangyong C&E Donghae Plant. [Photo by Ssangyong C&E]

[Asia Economy Reporter Kim Jong-hwa] Ssangyong C&E's consolidated sales for last year were tentatively estimated at 1.6614 trillion KRW, a 13% increase compared to the same period the previous year. This is attributed to the cement price hikes reflected since July last year and an increase in domestic shipments. Operating profit was recorded at 248.7 billion KRW, down from the previous year due to the surge in raw material prices such as thermal coal.

In particular, sales in the fourth quarter of last year reached 486.1 billion KRW, up 14% year-on-year, while operating profit decreased by about 9% to 68.1 billion KRW. The decline in operating profit was significantly affected by the deterioration of the cement business division’s profitability, as the price of thermal coal, which impacts cement production costs, surged more than threefold compared to 2020, and manufacturing costs rose due to shortages of urea solution and increased transportation expenses.

On the other hand, the expansion of the use of recycled resources as alternative fuel to thermal coal in the environmental business division, along with profit improvements in non-cement business divisions such as shipping and resource businesses, contributed to the solid overall performance.

Ssangyong C&E expects sales and operating profit to improve this year depending on internal and external factors. An increase in cement demand is anticipated due to a rise in housing starts such as apartments, and domestic sales volume is expected to grow with the partial completion of new installations and remodeling works aimed at expanding the use of recycled resources. Additionally, sales growth and profit improvement are expected to be prominent in the recycled resource intermediate processing business, which the company newly entered last year.

A Ssangyong C&E official stated, "Although there are concerns about rising costs, we will strive to improve scale and profitability by reducing thermal coal usage and expanding the environmental business."

This content was produced with the assistance of AI translation services.