Daelim Industrial Q1 Operating Profit 290.2 Billion KRW... 20% Increase Year-on-Year

[Asia Economy Reporter Onyu Lim] Daelim Industrial announced on the 29th that its operating profit for the first quarter of this year was tentatively estimated at 290.2 billion KRW, a 20.5% increase compared to the same period last year.

Sales increased by 8.1% year-on-year to 2.5094 trillion KRW, but net profit decreased by 5.6% to 223.2 billion KRW.

Daelim Industrial explained, "The cost ratio of all construction business sectors improved, and the performance improvement of its consolidated subsidiary Samho, as well as the effect of consolidating Goryeo Development, which graduated from workout (corporate financial restructuring), contributed to the increase in sales and operating profit."

However, the petrochemical business saw a decline in profits due to reduced product demand caused by the spread of COVID-19 and a sharp drop in oil prices.

On a consolidated basis, new orders recorded 950.8 billion KRW, down 27% from the same period last year as the business environment contracted due to the COVID-19 crisis. The order backlog at the end of the first quarter was 20.6236 trillion KRW, similar to the end of last year.

Although the debt ratio and net borrowings increased slightly compared to the same period last year, Daelim Industrial stated that it still maintains the highest level of financial soundness in the construction industry with a consolidated debt ratio of 105% and net cash of 53 billion KRW.

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