Samsung C&T, Operating Profit Up 18% YoY... "Strong Progress in Overseas Projects"

Samsung C&T's operating profit for the first quarter was recorded at 641 billion KRW, an increase of 18.3% compared to the same period last year. Sales rose 1.9% during the same period to 10.239 trillion KRW. The increase in performance was attributed to the full-scale progress of large overseas construction projects secured by the construction division, including the UAE HVDC, Qatar solar power, and airports in Taiwan and Bangladesh.

The construction division generated sales of 4.6 trillion KRW and an operating profit of 292 billion KRW. Sales surged 52.4% and operating profit jumped 88.4% compared to the same period last year. First-quarter performance reached 6.106 trillion KRW, with an order backlog of 29.283 trillion KRW.

A Samsung C&T official stated, "Both scale and profitability improved due to the favorable progress of overseas projects secured over the past two to three years," adding, "Major orders in the first quarter included the $2.3 trillion Taylor plant in the U.S. and the $1.6 trillion P4 plant in Pyeongtaek."

Samsung Electronics' $17 billion foundry (semiconductor contract manufacturing) plant site in Taylor, Texas, USA (approximately 21 trillion KRW).
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Samsung C&T plans to pursue additional orders in the second quarter, including renewable energy projects in the Middle East and building projects in Southeast Asia.

The trading division recorded sales of 3.604 trillion KRW, down 37.7% from the same period last year. Operating profit fell 47.9% to 99 billion KRW. The decline in performance compared to the first quarter of last year was due to a base effect. Samsung C&T stated, "Due to business expansion and efficiency improvements, we recorded higher performance levels than in the fourth quarter of last year."

The fashion division posted sales of 526 billion KRW and an operating profit of 57 billion KRW. The resort division recorded sales of 788 billion KRW and an operating profit of 7 billion KRW.

A Samsung C&T official commented on the first-quarter results, saying, "Despite global economic uncertainties, we maintained stable profit growth based on a diversified business portfolio and differentiated competitiveness."

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