Seoul: Daewoo Engineering and Construction (E and C) Co., a leading South Korean construction firm, announced a significant 31.8 percent increase in its first-quarter operating profit, attributed to enhanced performance in its housing and plant divisions.
According to Yonhap News Agency, Daewoo E and C reported an operating income of 151.3 billion won (approximately US$105.2 million) for the January-March period, showcasing a substantial rise from the previous year. Despite the positive growth in operating income, the company's sales experienced a 16.5 percent decrease year-on-year, amounting to 2.07 trillion won, while net income dropped by 36.6 percent to 58 billion won.
The operating profit notably surpassed the market consensus of 93.9 billion won, as aggregated by Yonhap Infomax, the financial data subsidiary of Yonhap News Agency. The company attributed the surge in operating profit to the advancements in its housing construction and plant business sectors, which compensated for the overall decline in sales figures.
During the first quarter, Daewoo E and C successfully secured new orders totaling 2.82 trillion won, marking a 13.4 percent increase from the same period last year. The company's order backlog reached an impressive 45 trillion won, indicating a strong pipeline of projects.
Looking ahead, Daewoo E and C aims to broaden its domestic urban redevelopment initiatives and target substantial international contracts throughout the year. Notably, the company recently obtained a $700 million framework agreement for the construction of a fertilizer plant in Turkmenistan, highlighting its ongoing efforts to expand its global footprint.