Daelim Industrial Surpasses 1 Trillion KRW Operating Profit Last Year... 31% Increase YoY

"Expected to Achieve Sales of 10.8 Trillion Won This Year"

[Asia Economy Reporter Onyu Lim] Daelim Industrial's operating profit surpassed 1 trillion won last year, showing an increase of more than 30% compared to the previous year.

Daelim Industrial announced on the 30th that its consolidated sales for 2019 were tentatively estimated at 9.6895 trillion won, with an operating profit of 1.0194 trillion won.

Sales decreased by 11.79% compared to the previous year to 9.6895 trillion won, but operating profit increased by 31.2% to 1.1094 trillion won. Daelim Industrial explained that this was the result of "selective order intake focused on profitability and efforts to improve costs." In particular, the construction division's operating profit increased by 42.8% year-on-year to 724.3 billion won, driving the growth in operating profit. Net profit rose slightly by 0.26% to 679.9 billion won.

Operating profit in the fourth quarter was 347.7 billion won, an increase of 108.64% compared to the same period last year. Sales and net profit were approximately 2.7363 trillion won and 119.2 billion won, respectively.

Improvement in profits of consolidated subsidiaries also contributed to the rise in operating profit. Daelim Industrial explained, "Profitability improved mainly in major overseas subsidiaries and Samho, resulting in consolidated subsidiary operating profit rising 26.5% year-on-year to 306.7 billion won." As a result, the consolidated operating profit margin increased by 3.7 percentage points compared to the previous year’s cumulative figure to 11.4%, achieving the highest profitability level in the construction industry.

Consolidated new orders reached 3.6016 trillion won in the fourth quarter alone, including the Hyundai Chemical petrochemical plant and Ulleung Airport construction, totaling 6.757 trillion won for the year. As of the end of last year, the consolidated debt ratio improved to 100.9%, a decrease of 11.2 percentage points compared to the end of the previous year.

Daelim Industrial forecasted, "This year, sales will reach 10.8 trillion won, and new orders will achieve 10.9 trillion won."

This content was produced with the assistance of AI translation services.