[Public Notice+] SG Reports 17.9 Billion KRW in Q1 Sales... "Performance Recovery Expected from Q2"

[Asia Economy Reporter Jang Hyowon] SG, the No.1 company in the asphalt concrete (Ascon) industry, disclosed its business performance for the first quarter of this year.

SG (CEO Park Changho) announced on the 20th that it recorded sales of 17.9 billion KRW, an operating loss of 2.8 billion KRW, and a net loss of 3.5 billion KRW in the first quarter of this year.

Compared to the same period last year, sales decreased by 16.3%, and both operating profit and net profit showed losses.

An SG official said, "Ascon and ready-mixed concrete are sensitive to temperature, so due to the seasonal factor of winter, the first quarter recorded disappointing results," adding, "In addition, the occurrence of COVID-19 cases at major delivery sites negatively affected the performance."

He continued, "From April, major sites that had been halted resumed normal operations, so sales are expected to recover starting from the second quarter," and "Due to the government's policy to expand the SOC project budget this year, positive effects on performance are also expected."

An SG official added, "The SOC budget in 2020 increased by 17.2% compared to the previous year's amount of 23 trillion KRW, and if additional budget execution occurs next year, it will have a positive impact on the performance of Ascon, ready-mixed concrete manufacturing, and related civil engineering and paving works."

Meanwhile, SG is currently promoting a new construction technology for Eco Steel Ascon, which has a cost reduction effect of 41.3% compared to general Ascon. The company is expected to supply it starting from the second half of this year, beginning with Seoul and Incheon and expanding to the metropolitan area.

In addition, through the new Ascon environmental facility business EGR+ (Exhaust Gas Recycling), SG plans to dominate the Ascon environmental facility market worth approximately 340 billion KRW.

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