(LEAD) Samsung SDS Q2 net down amid pandemic

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SEOUL, July 24 (Yonhap) -- Samsung SDS Co., an IT service unit of Samsung Group, on Friday reported tepid earnings for the second quarter of the year amid the fallout from the novel coronavirus.

Its net profit stood at 145.8 billion won (US$121.8 million) in the April-June period, down 24.7 percent from a year earlier.

Its operating profit dropped 24 percent on-year to 196.7 billion won in the second quarter, the company said in a regulatory filing. Sales fell 7.5 percent on-year to 2.56 trillion won over the cited period.

Samsung SDS said the slump came as the pandemic delayed its projects.

The company's IT service business posted sales of 1.31 trillion won in the second quarter, down 15.9 percent from a year ago. But sales of its logistics business process outsourcing service increased 3.3 percent on-year to 1.24 trillion won.

In the second half of the year, Samsung SDS expected a recovery in IT investments from enterprises despite the challenging economic environment.

The company said it will focus on a cloud system and smart solutions for manufacturing to secure more business opportunities.
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