Daewoo Engineering & Construction said on Tuesday that its operating profit rose by more than 30 percent in the first quarter compared to a year earlier, fueled by improved profitability in its housing and plant construction divisions.
The company reported an operating profit of 151.3 billion won ($105 million) for the January–March period, up 31.8 percent year-on-year. Consolidated sales declined by 16.5 percent to 2.07 trillion won. Net income also dropped sharply, falling 36.6 percent to 58 billion won.
By business segment, housing construction was the biggest revenue generator at 1.38 trillion won, while civil engineering generated 415 billion won, plant construction accounted for 227 billion won and other businesses contributed 53.1 billion won.
“Sales decreased due to a reduction in the number of ongoing project sites, but improved profitability in our housing and plant sectors led to a rise in operating profit,” Daewoo E&C said in a statement.
The firm secured 2.82 trillion won in new orders during the quarter, up 13.4 percent from a year earlier. Major orders included a 697 billion won redevelopment project at Seoul’s Gaepo Jugong Complex 5, a 479.5 billion won combined residential and commercial building project in Incheon’s Cheongna-dong and a 395.3 billion won apartment development in Cheongju, North Chungcheong Province.
Daewoo’s order backlog stood at 45 trillion won — equivalent to some 4.3 times its annual sales.
“With a focus on operational efficiency and strong momentum in overseas orders, we are on track to meet our full-year business targets,” the company said.
The builder will remain committed to securing large-scale overseas projects, including a nuclear power plant in the Czech Republic, a fertilizer plant in Turkmenistan and a naval base in Iraq, to further strengthen its earnings.
hnpark@heraldcorp.com
