Samsung C&T Corp., the construction and trading arm of South Korea’s largest conglomerate Samsung Group, reported a 44 percent on-year increase in operating income for the second quarter thanks to solid performance of its business units across the board.

Samsung C&T on Wednesday said in its regulatory filing that it posted 255 billion won ($227.5 million) in operating profit in the second quarter ended June, up 44 percent from the same period last year. Sales rose 3.8 percent to 7.3 trillion won over the same period, whereas net income declined 17 percent to 112 billion won.

It is the fifth consecutive quarter for Samsung C&T to report operating profit since it swung to profits in the second quarter last year thanks to consistent efforts to reform its business. Since its merger with Cheil Industries in 2015, the company had logged losses. In the first quarter of last year, it even posted more than 400 billion won in operating loss factoring in massive losses from overseas projects.

By sector, its construction unit saw a 29.6 percent jump in operating income in the April-June period compared to a year ago although sales edged down 1.8 percent to 3.1 trillion won mainly due to its power generating plants’ construction that is near to completion. Ongoing projects such as the construction of an airport in Singapore, a thoroughfare in Australia and a semiconductor facility in Korea have helped prop up the unit’s operating profit.

The company’s trading business also raised 46 billion won in operating income, a whopping 318 percent surge from a year ago. Sales were also up 11.7 percent to surpass 3 trillion won, thanks to an increase in trading volume of natural resources and steel.

Its fashion unit raked in 9.5 billion won in operating income, up 578 percent on year, despite an 8.6 percent drop in sales to 401 billion won. Restructuring efforts to streamline the overall fashion business through brand mergers and improved supply margin have helped to boost profitability in the fashion business, according to the company.

Operating income of Samsung C&T’s resort business reached 67 billion won in the second quarter, up 11.6 percent from last year, on sales of 688 billion won that was 4.8 percent higher on year thanks to growing landscape business and a rise in demand for its catering services in overseas markets.

Its shares ended down 2.1 percent, or 3,000 won, at 139,000 won on Wednesday in Seoul trading.

By Chung Woo-sung

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