‘EAST WEST Campus’ of Samsung SDS [사진 제공 = 삼성SDS]Samsung SDS recorded good results thanks to a rise in logistics freight rates and cloud conversion.
Samsung SDS announced on the 28th that it recorded 4,191.5 billion won in sales and 273.5 billion won in operating profit in the first quarter. Compared to the same period last year, sales increased 36.9% and operating profit increased by 26%.
By business sector, the logistics business recorded KRW 2.739 trillion in sales, a 61.8% increase from the same period last year due to an increase in the volume of shipments of IT products, including smartphones, TVs, and home appliances, and an increase in logistics freight rates.
Samsung SDS plans to focus on securing stable transportation capacity and freight rates in the second quarter, and expanding customers with digital forwarding solution Cello Square. “We plan to launch Cello Square service in China in May, and expand to Southeast Asia in the second half of the year and the United States and Europe next year,” said Mann Choi, managing director of Samsung SDS’ Logistics Division.
Sales of the IT service business increased by 6.1% compared to the same period last year to KRW 1.45 trillion due to the conversion of enterprise systems including management information system (MIS) and enterprise resource planning (ERP) to the cloud, and expansion of the next-generation manufacturing execution system (MES).
In particular, the cloud business, which the company is struggling with as its future food business, recorded 249 billion won in sales, accounting for about 17% of the total IT service sales.
Samsung SDS aims to give strength to new businesses in the second quarter, centering on high-performance cloud business for customer research and development (R&D). Seok-Rip Kang, Vice President of Samsung SDS’ Solution Business Division, said, “Entering the second quarter, companies are expected to reduce IT costs and adopt public clouds to utilize new technologies such as artificial intelligence (AI) and big data.” It is predicted that the number of companies using the cloud will increase in areas that require security.”
The newly built Dongtan HPC Center is also considered an inflection point that will lead the growth of the cloud business. “Currently, the Dongtan data center has a completion rate of 55% as of the end of April,” said Yang Su-yeon, managing director of Samsung SDS’ Cloud Service Division.
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