Geum Yi

(LEAD) Samsung C&T Q4 net down on reduced equity gains, increased costs

January 27, 2021

Samsung C&T Corp., a construction and trading unit of Samsung Group, said Wednesday its fourth-quarter net profit reached 269.9 billion won (US$244.4 million), down 23.5 percent from a year earlier, on reduced gains from equity ties and increased costs in its trading business.

Operating profit for the October-December period stood at 256.4 billion won, down 21 percent from the previous year, while revenue rose 6.3 percent to 8.18 trillion won, according to a company regulatory filing.

Reduced gains from equity ties with Samsung Biologics Co., a major biopharmaceutical firm in South Korea, weighed on Samsung C&T’s fourth-quarter bottom line.

This file photo, taken June, 29, 2020, shows Samsung Group's logo at the conglomerate's office in southern Seoul. (Yonhap)

This file photo, taken June, 29, 2020, shows Samsung Group’s logo at the conglomerate’s office in southern Seoul. (Yonhap)

Samsung C&T holds a 43.4 percent stake in Samsung Biologics, which earlier reported a fourth-quarter net profit of 96.2 billion won, down 54.3 percent from the previous year.

Still, for the whole of 2020, Samsung C&T’s net profit rose 10.8 percent on-year to 1.16 trillion won. Operating income for the year was 857.1 billion won, down 1.1 percent from a year earlier, while sales fell 1.8 percent to 30.2 trillion won.

Samsung Biologics’ net income rose 18.8 percent on-year in 2020 to 241 billion won on the back of improved factory utilization and increased sales.

Samsung C&T said its fourth-quarter sales from its construction business reached 3.1 trillion won, up 13.6 percent from a year earlier, thanks to construction projects in Vietnam.

Its trading business unit also saw sales rise 5.1 percent on-year to 3.6 trillion won, but operating profit fell 40 percent to 12 billion won due to rising shipping costs at the end of the year.