Samsung C&T Corporation's Q3 operating profit rises 15% year on year to 1.143 trillion won

[Financial News] Samsung C&T Corporation posted increases in both revenue and operating profit in the third quarter of this year, driven by balanced growth across its major business divisions, including construction, trading, fashion and resorts. Despite uncertainty in global supply chains, the trading division maintained stable performance on the back of stronger trading profits from essential industrial materials and a robust tech business. The resort division also improved profitability through operational efficiencies. 
Samsung C&T Corporation said on the 28th that it recorded consolidated revenue of 12.008 trillion won and operating profit of 1.143 trillion won in the third quarter of this year. Revenue rose 18.3% and operating profit increased 15.0% from the same period a year earlier. 
By division, the trading division recorded revenue of 4.2 trillion won and operating profit of 99 billion won in the third quarter. These figures were up 8.1% and 30.3%, respectively, from the same period a year earlier. Despite ongoing uncertainty surrounding global supply chains, higher profits from trading essential industrial materials and strong performance in the tech business drove the improvement.
Industrial materials revenue was 3.95 trillion won, up 311 billion won from 3.639 trillion won in the same period a year earlier. Tech business revenue also rose by 29 billion won to 249 billion won from 220 billion won. As a result, the trading division's operating margin increased by 0.5 percentage points, from 1.9% in the same period last year to 2.4% this year. 
However, compared with the previous quarter, revenue fell by 503 billion won and operating profit by 43 billion won. Factors included a base effect from favorable market conditions in the previous quarter, the application of European Union (EU) quotas, and the carryover of gains from the sale of a solar development business. Samsung C&T Corporation forecast that year-end demand would slow in the fourth quarter, but that the trading division's full-year results would grow from the previous year. 
The resort division recorded revenue of 1.115 trillion won and operating profit of 85 billion won, up 4.1% and 16.4%, respectively, from the same period a year earlier. Expansion of food and beverage businesses, including contract catering and food ingredient distribution, and operational efficiencies contributed to the improved results. However, revenue in the leisure business declined year on year due to lower demand amid the heat wave and the completion of major landscaping projects.
The construction division recorded revenue of 4.465 trillion won and operating profit of 277 billion won, supported by major projects entering full-scale construction. High-tech construction projects, including Samsung Electronics Pyeongtaek Plant 5, and overseas building projects underpinned the improvement in results. Despite a seasonal off-peak period, the fashion division also recorded revenue of 498 billion won and operating profit of 20 billion won, as popular products from its core brands sold well. 
Samsung C&T Corporation said that it had maintained stable growth across all business divisions, supported by a diverse business portfolio despite an uncertain business environment at home and abroad. 

[email protected] Lim Su-bin Reporter