Samsung C&T disclosed on the 29th that it recorded operating profit of 1.0317 trillion won in Q2, representing a 37.1% increase compared to the same period last year. Revenue reached 11.995 trillion won, up 19.7% year-over-year, while net income stood at 915.5 billion won. The results significantly exceeded market expectations, as analyst consensus compiled by Yonhap Infomax from 10 securities firms projected Q2 operating profit of 864.4 billion won (14.87% YoY increase) and revenue of 10.986 trillion won (9.62% YoY increase). Strong performance across Construction, Trading, and Bio segments drove the earnings beat despite global economic uncertainties.
Samsung C&T Reports Q2 Operating Profit of 1.0317 Trillion Won
Samsung C&T's Q2 operating profit of 1.0317 trillion won exceeded analyst consensus by approximately 19.4%. The company's revenue of 11.995 trillion won also surpassed the expected 10.986 trillion won. Net income for the quarter reached 915.5 billion won.
By business segment, the Bio division recorded the highest operating profit at 586 billion won, followed by Construction at 202 billion won, Trading at 142 billion won, Fashion at 54 billion won, and Resort at 48 billion won.
Construction Segment Operating Profit Increases 71.2% Year-Over-Year
The Construction segment's operating profit grew 71.2% compared to the same period last year, reaching 202 billion won. This growth was driven by the full-scale progress of Samsung Electronics' Pyeongtaek P4 completion work and P5 structural construction, along with favorable progress on overseas plant projects secured last year.
Q2 construction orders totaled 5.448 trillion won, with housing construction rights accounting for 4 trillion won. Samsung C&T secured construction rights for Apgujeong District 4, Gaepo Woosung 4th Complex, and Sinbanpo 19th and 25th Complexes during Q2. The order backlog stands at 34.244 trillion won.
Trading and Fashion Segments Record Strong Growth
The Trading segment's operating profit increased 77.5% year-over-year due to favorable market conditions in steel, chemicals, and fertilizers, combined with stable performance from overseas operations and renewable energy development projects.
The Fashion segment saw operating profit rise 63.6% amid positive consumer sentiment, with balanced growth across proprietary and imported brands.
The Bio segment, through subsidiary Samsung Biologics, increased operating profit through full operation of Plants 1-4 and favorable exchange rate effects.
The Resort segment experienced an 11.1% year-over-year decline in operating profit despite revenue growth from expanded food service and food distribution businesses, due to reduced leisure demand and the completion of large-scale landscaping (GSS) projects.
Samsung C&T Stock Closes Down 6.39% on the 29th
Samsung C&T's stock price closed at 285,500 won on the 29th, down 6.39% from the previous trading day despite the strong earnings results.
Samsung C&T stated: "Despite expanding global economic uncertainties and changes in the business environment, we continued stable growth based on our diversified business portfolio and competitiveness."
FAQ
What was Samsung C&T's Q2 operating profit on the 29th?
Samsung C&T disclosed on the 29th that its Q2 operating profit was 1.0317 trillion won, representing a 37.1% increase compared to the same period last year. Revenue reached 11.995 trillion won, up 19.7% year-over-year.
Which Samsung C&T segment recorded the highest operating profit growth in Q2?
The Trading segment recorded the highest operating profit growth rate at 77.5% year-over-year, reaching 142 billion won, driven by favorable market conditions in steel, chemicals, and fertilizers. The Construction segment followed with 71.2% growth to 202 billion won.
