Daewoo Engineering & Construction Co., one of South Korea's major builders, said Tuesday that its second-quarter earnings surged more than 2.5 times from a year earlier on a recovery in the local housing market.

Net profit came to 83.55 billion won ($71.41 million) during the April-June period, up 162.83 percent from the 31.79 billion won posted a year earlier, the company said in a regulatory filing.

Operating income, however, dropped 10.3 percent to 92.4 billion won over the cited period, while sales inched up 0.24 percent to 2.52 trillion won.

In the first half of the year, Daewoo E&C saw its net climb 12.12 percent on-year to 107.3 billion won, although its operating profit plunged 29.8 percent to 156.3 billion won. Sales moved up 2.76 percent to 4.71 trillion won.

The jump in the second-quarter bottom line was attributed to the brisk domestic housing market and increased orders for big construction projects.

The company offered a rosy business outlook down the road as the real estate market is showing signs of a recovery from a prolonged slump. 

Backed by lower borrowing costs, more people have started to purchase houses, while the government has also eased rules on reconstructing old apartments.

"Based on the resilient housing and construction businesses, we expect to see a V-shaped growth down the road," a Daewoo E&C official said. (Yonhap)