Seoul: Samsung E and A Co., a plant engineering unit of Samsung Group, announced on Thursday that its third-quarter net profit fell by 0.6 percent compared to the previous year, primarily due to a decrease in new plant orders.
According to Yonhap News Agency, the company’s net profit for the three months ending in September dropped to 157.4 billion won (approximately US$110.4 million) from 158.2 billion won during the same period last year, as reported in a regulatory filing. A company spokesperson stated that the quarterly bottom line was affected by reduced orders for industrial, water, and waste treatment plants, as electronics companies have scaled back investments in such facilities.
The report also highlighted a decrease in operating profit, which fell by 13.4 percent to 176.5 billion won in the third quarter, down from 203.9 billion won a year ago. Sales experienced a decline of 13.9 percent, falling to 1.99 trillion won from 2.31 trillion won. For the January-September period, the company saw its net income decrease by 13.5 percent year-on-year to 456.3 billion won, while operating profit plunged 23.8 percent to 514.7 billion won on sales of 6.27 trillion won, marking a 15.1 percent decrease from the previous year.
Despite the decline in profits, Samsung E and A remains optimistic about achieving its annual operating income target of 700 billion won. The company anticipates that revenue from major projects, such as Saudi Arabia’s Fadhili gas-fired plant, will be reflected in the fourth-quarter earnings. Additionally, Samsung E and A has secured new orders worth 4.08 trillion won so far this year, bringing its total order backlog to 18 trillion won.