Construction Revenue of KRW 5.584 Trillion
Up Year-on-Year
Samsung C&T announced that it recorded revenue of KRW 10.796 trillion and operating profit of KRW 712.0 billion in its first-quarter 2024 earnings results.
In the first quarter, amid heightened global economic uncertainty, the company maintained solid profitability based on differentiated competitiveness across its business divisions, and overall results improved. The Construction division delivered improved results driven by strong progress on major domestic and overseas projects, while the Trading & Investment division improved from the previous quarter through business expansion and enhanced profitability achieved by strengthening its operational competitiveness.
In the second quarter, amid growing external volatility, Samsung C&T plans to work to maintain stable results by firmly securing its earnings base on the strength of its improved business structure.
In the Construction division, revenue was KRW 5.584 trillion and operating profit was KRW 337.0 billion, with revenue increasing by KRW 984.0 billion (21.4%) from the same period a year earlier (KRW 4.6 trillion). Operating profit rose by KRW 45.0 billion (15.4%) from the same period a year earlier (KRW 292.0 billion). Compared with the previous quarter (KRW 4.678 trillion), Construction division revenue increased by KRW 906.0 billion (19.4%), and operating profit increased by KRW 202.0 billion (149.6%) from the previous quarter (KRW 135.0 billion).
Backed by a balanced portfolio, continued proactive efforts to improve competitiveness, and stable project execution capabilities, work on recently secured high-quality large-scale projects gained full momentum, driving increases in both revenue and operating profit compared with the same period a year earlier and with the previous quarter.
In the Trading & Investment division, revenue was KRW 2.906 trillion and operating profit was KRW 85.0 billion, with revenue falling by KRW 698.0 billion (-19.4%) from the same period a year earlier (KRW 3.604 trillion) and operating profit declining by KRW 14.0 billion (-14.1%) from the same period a year earlier (KRW 99.0 billion). Trading & Investment division revenue rose by KRW 15.0 billion (0.5%) from the previous quarter (KRW 2.891 trillion), and operating profit increased by KRW 28.0 billion (49.1%) from the previous quarter (KRW 57.0 billion).
Revenue and operating profit in the Trading & Investment division declined somewhat year-on-year as volumes contracted due to falling raw material prices and the streamlining of low-margin trading partners; however, the division posted higher results than the previous quarter on the back of business expansion and enhanced profitability driven by stronger operational competitiveness.
In the Resort division, revenue was KRW 842.0 billion and operating profit was KRW 21.0 billion. Revenue increased by KRW 54.0 billion (6.9%) from the same period a year earlier (KRW 788.0 billion), and operating profit rose by KRW 14.0 billion (200%) from the same period a year earlier (KRW 7.0 billion). Resort division revenue fell by KRW 70.0 billion (-7.7%) from the previous quarter (KRW 912.0 billion), and operating profit declined by KRW 25.0 billion (-54.4%) from the previous quarter (KRW 46.0 billion).