1Trillion won milestone would be best since 2015 merger with Cheil Industries, helped by the construction sector with boosts in new projects and profits
The flag of Samsung C&T Co. (Photo: Samsung C&T)
Samsung C&T Corp., an affiliate of Samsung Group, is most likely to hit more than 1 trillion won in operating profit this year, thereby joining the 1 trillion operating profit club for the first time, helped by construction, trading, and resort sectors, with the fashion sector making a great turnaround so far this year.
According to industry sources on Oct. 29, the operating profit of the Samsung Group affiliate is likely to surpass the 1 trillion won level at 1.1 trillion this year for the first time, a record since the 2015 merger with Cheil Textile and the first since its mother company, Samsung Co., was launched in 1938.
Up to September, Samsung C&T logged 861 billion won in operating profit, posting around 287 billion won in the first three quarters this year. Annual sales are likely to reach 30 trillion won this year.
The construction sector has played a major role in the company’s outstanding results by clinching new project orders both at home and overseas, and marking improved profitability for the projects. Its operating profit for the year is likely to account for 7.2 percent of total sales, up from 2.9 percent for the same period last year.
Its operating profit for Q3 stands at 204 billion won, up 113 percent YoY while the trading sector seeing its profit improved due to the boosts in raw material prices.
The fashion sector secured a net profit for the first time in 2017, amounting to 32.7 billion won.
This year it is headed for a profit again, while the resort sector has been seeing its operating profit rise every year since 2015 at 127 billion won, 157 billion won for 2016 and 180 billion won for 2017.
The company’s outlook looks promising, especially the construction sector. A number of Samsung Group affiliates led by Samsung Electronics will expand their plants or build new ones and the construction sector will get the projects along with Samsung Engineering to keep the details of the projects confidential.
The company announced that it got construction projects worth 700 billion won and 1.210 trillion won from Samsung Electronics, with Samsung Biologics slated to order construction projects as it has to expand its production facilities with sales expanding to help the company’s annual operating profit to hit around 1 trillion won for the next several years.
In 1975, Samsung C&T was designated by the Korean government as the first general trading company to lead overseas sales operations. After the company merged with Samsung Construction in December 1995, Samsung C&T began engaging in global business with offices in more than 50 countries.
In September 2015, Samsung C&T merged with Cheil Industries, a Korean textile firm prominent in the fashion industry that was originally acquired by Samsung Everland in December 2013.
The resulting Samsung C&T focuses on fashion, food, housing, leisure, and bio businesses with its Engineering & Construction, Trading & Investment, Fashion and Resort & Construction Groups. The merger has established a third pillar for the Samsung Group, adding to its electronics and financial services.
Samsung C&T Engineering & Construction Group specializes in engineering, procurement, and construction.
Engineering & Construction Group of Samsung C&T is best known for its role in notable skyscraper projects, including the 828-meter Burj Khalifa in Dubai, and the Petronas Towers in Malaysia.
The group is also known for building the Cleveland Clinic in Abu Dhabi, as well as Korea’s Incheon International Airport, Giheung Semiconductor Complex, and Raemian Apartment Complexes.
Samsung C & T donates kimchi to Needy people
Samsung C & T Corp. Construction Sector conducted its CSR event at the parking space of the historical lot at Amsa-dong, Gangdong Ward, Seoul on Dec. 8, jointly with the Gangdong Ward Voluntary Service Center and the Gangdong Integrated Social Welfare Hall in the name of the “Love Kimjang Sharing” a social service with a hundred staff and executives of the company participating led by President Lee Young-ho.
They brought 2,500 cabbages to be delivered to the economically-displaced families in the neighborhood worked from 9 a.m. to around 5 p.m. making “kimchi” a traditional salad mixed with shrimps, oysters, fish and garlic, among others, which the Korean people cannot do without during the winter.
They gave the entire kimchi they made to a number of local organizations including the local community center, the Gangdong Integrated Welfare Hall, the Food Bank Market Center and other regional welfare facilities in the area.
The entire cabbages used to make Kimchi were brought from the Tanbu Myun, the Boun County, North Chungcheong Province, which has a sisterhood relationship with Samsung C&T.
The company has been procuring the kimchi materials and special agricultural produce to be used as gifts for famous holidays from the local area for the past 16 years since the sisterhood tieup was signed in 2003.
The company also sent the volunteers to the region during the rice planting season to help the farm households to plant rice seedlings.
A scene from around 100 Samsung C&T executives and staff led by President Lee Young-ho take time out to make Kimch at a parking lot in Amsa-dong, Gangdong Ward, in southern Seoul, to make kimchi with 2,500 cabbages they brought and donated the tradtional Korean salad they made to the economically-displaced familiies in the neighborhood on Dec. 8. The local district in Seoul has a sisterhood ties with the company since 2003. (Photo: Samsung C&T)