Daelim Industrial Q2 Operating Profit 310.3 Billion KRW... 4% Increase YoY

[Asia Economy Reporter Onyu Lim] Daelim Industrial is expected to record an operating profit of around 310 billion KRW in the second quarter, driven by strong performance in its construction division and new businesses despite the spread of the novel coronavirus (COVID-19).

On the 30th, Daelim Industrial announced its preliminary second-quarter results, forecasting sales of 2.5477 trillion KRW and an operating profit of 310.3 billion KRW. These figures represent increases of 3% and 4%, respectively, compared to the same period last year. As a result, cumulative sales for the first half of the year reached 5.0114 trillion KRW, with an operating profit of 599.7 billion KRW, marking increases of 5% and 11% year-on-year.

Despite the challenging economic conditions caused by the spread of COVID-19, Daelim Industrial has maintained solid performance. A company representative explained, "The factors behind achieving these results include the continued strong performance of the construction division and the effect of newly consolidated subsidiaries, Cariflex and Goryeo Development."

The petrochemical division also saw an increase in operating profit compared to the previous quarter due to the rebound in oil prices. Additionally, equity-method affiliates in the petrochemical sector, Yeochun NCC and Poly Mirae, significantly improved profits thanks to the oil price rebound and strong product sales.

On a consolidated basis, new orders increased by 119% year-on-year to 2.4013 trillion KRW, driven by strong order performance in the housing sector. The order backlog at the end of the second quarter stood at 20.0812 trillion KRW. Net borrowings rose slightly to 541.4 billion KRW compared to the same period last year; however, the consolidated debt ratio improved to 97% due to strong performance, maintaining the highest level of financial soundness in the construction industry.

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