Shinsung E&G swings to operating profit in Q2 surprise turnaround

Shinsung E&G posted a preliminary consolidated operating profit of 3.1 billion won ($2.18 million) in the second quarter of this year, the company disclosed Friday. The result marks an 8.8% decline from 3.4 billion won in the same period last year.

Second-quarter sales reached 201.8 billion won, up 44.2% from 140 billion won a year earlier and 31.3% higher than the 153.7 billion won recorded in the first quarter.

The company swung to a 3.1 billion won operating profit in the second quarter from a 2.2 billion won operating loss in the prior quarter. The recovery in quarterly profitability, driven by rising sales, also pushed the first-half cumulative operating profit into positive territory.

First-half cumulative sales rose 38.7% to 355.5 billion won from 256.3 billion won in the same period last year. First-half operating profit came in at 800 million won, reversing a 1.9 billion won operating loss in the year-ago period.

The bottom line remained in the red. The second-quarter net loss narrowed to 2.2 billion won from 3.8 billion won in the previous quarter, but the result represented a swing to a loss compared with net profit of 39 million won in the same quarter last year. The first-half cumulative net loss shrank to 6 billion won from 6.9 billion won a year earlier.