Seoul: Samsung E and A Co., a South Korean plant engineering company, announced a 31 percent decline in its second-quarter net profit compared to the previous year, attributing the drop to a base effect. The company reported that its net profit for the three months ending in June was 141.7 billion won (US$103.7 million), down from 205.2 billion won in the same period last year.
According to Yonhap News Agency, the company cited stronger earnings in the second quarter of the previous year as the reason for the year-on-year decline. A spokesperson clarified that the robust performance in the prior year set a high benchmark, contributing to the current quarter's comparative decrease. Additionally, operating profit saw a 31.1 percent dip to 180.9 billion won, compared to 262.5 billion won in the same quarter last year.
Sales also experienced a downturn, decreasing by 18.9 percent to 2.17 trillion won from 2.69 trillion won during the corresponding period last year. Despite the current challenges, the company remains optimistic about its financial outlook. It anticipates improved earnings in the second half of the year, driven by revenue from the Fadhili gas-fired power plant project in Saudi Arabia, which is expected to bolster its financial performance.
Samsung E and A Co. has set a goal to achieve an operating profit of 700 billion won for the year. This target marks a decrease from the 971.6 billion won operating profit anticipated in 2024, reflecting ongoing adjustments in the company's financial strategy.