Posco Engineering & Construction has found itself back in the black after completing its “100-day turnaround” strategy, which involved increasing project profit margins and minimizing expenses, according to Posco E&C earlier this week.

The company incurred large-scale deficits last year due to losses from overseas projects such as its construction order for CSP Steel Plant Complex -- the largest-ever overseas steel plant construction order won by Posco E&C. However, Posco says it has bounced back through its turnaround efforts after achieving 1.5 trillion won ($1.3 billion) in sales and 135.8 billion won in operating profits in the first quarter of this year. 

Furthermore, with Posco’s ongoing large-scale projects such as the construction of Busan LCT, estimated to be worth 1.5 trillion won, and Yeouido Parc 1 Tower, worth some 1.2 trillion won, the company estimates sales and operating profits will continue to rise following their completion.

In February, Posco E&C was absorbed by its parent company Posco Engineering in a horizontal merger amid Posco Group’s mass restructuring to combat the global economic slump.

As part of its differentiation strategies, the company will continue to expand its integration of construction and smart technologies including its front end engineering design and building information modeling, Posco E&C said.

By Julie Jackson (juliejackson@heraldcorp.com)