GS Construction Reports Q2 Operating Profit of 165.1 Billion KRW, Down 19.8% (Update)

[Asia Economy Reporter Kim Yuri] GS Engineering & Construction announced on the 29th that its operating profit for the second quarter of this year was 165.1 billion KRW, a 19.8% decrease compared to the same period last year. During the same period, sales decreased by 1.07% to 2.5474 trillion KRW, and net profit fell by 41.44% to 85.1 billion KRW.

For the first half of this year, operating profit was 336.2 billion KRW, sales amounted to 4.9888 trillion KRW, and net profit was 216.7 billion KRW. During this period, new orders totaled 4.686 trillion KRW. GS Engineering & Construction explained, "Compared to the first half of last year, the sales volume slightly declined," but added, "Despite difficulties at overseas sites caused by the novel coronavirus disease (COVID-19), the operating profit margin maintained an industry-leading level in the high 6% range, demonstrating solid profitability."

Based on the first half results, the building and housing division and the new business division achieved a gross profit margin of 12%. In particular, the new business division recorded sales of 235 billion KRW, an 85% increase compared to the first half of the previous year, reflecting the performance of European modular companies acquired earlier this year, Poland's Danwood and the UK's Elements Europe.

The 17.9% increase in new orders (4.686 trillion KRW) compared to the first half of last year was attributed to winning orders in the infrastructure sector such as the Integrated Train Testing Centre (ITCC), and in the building and housing sector, securing projects like the Ulsan Seobudong Apartment Complex, Gwangmyeong 12R Housing Redevelopment Project, and Hannam Heights Housing Reconstruction Project.

GS Engineering & Construction stated, "Going forward, we will continue to achieve sustainable growth by prioritizing stable profit trends, focusing on selective orders based on profitability rather than quantitative growth, strengthening competitiveness in existing businesses, and continuously discovering new growth engines."

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