Daewoo E&C 3Q Operating Profit Down 9.1% YoY... "Focusing on Orders and Risk Management"

Third-Quarter Sales at 1.99 Trillion Won, Operating Profit at 56.6 Billion Won
Down 21.9% and 9.1% Year-on-Year, Respectively

Daewoo Engineering & Construction's third-quarter results this year fell short of market expectations due to deteriorating industry conditions.

On October 31, Daewoo Engineering & Construction announced that it recorded sales of 1.9906 trillion won and operating profit of 56.6 billion won in the third quarter. Compared to the same period last year, sales decreased by 21.9% and operating profit dropped by 9.1%. Operating profit was about 43% lower than the securities market forecast of 99.3 billion won.

By business segment in the third quarter, sales were as follows: 1.322 trillion won in the Housing & Building segment, 408.9 billion won in the Civil Engineering segment, 219.5 billion won in the Plant segment, and 40.2 billion won in Other Consolidated Subsidiaries.

Cumulative sales for the first three quarters amounted to 6.3406 trillion won, down 19.3% from 7.8566 trillion won in the same period last year, while operating profit rose by 2.9% year-on-year to 290.1 billion won from 281.9 billion won.

A Daewoo Engineering & Construction official explained, "Sales declined due to a decrease in the number of ongoing sites," but added, "Thanks to solid internal management, cumulative operating profit increased year-on-year and the operating margin also rose by 1.0 percentage point to 4.6%."

Daewoo E&C Seoul Euljiro Building. Daewoo Engineering & Construction

Cumulative new orders for the third quarter reached 11.1556 trillion won, a 51.3% increase from 7.3722 trillion won in the same period last year. In the third quarter, highly profitable in-house projects such as Busan Seomyeon Summit The New (1.5162 trillion won), Suwon Mangpo Station Area Complex Development (782.6 billion won), and Uijeongbu Tapseok Prugio Park 7 (642.1 billion won) drove performance, achieving 78.6% of the annual order target of 14.2 trillion won.

As of the end of the third quarter, the order backlog stood at 48.8038 trillion won, equivalent to about 4.6 years' worth of work based on annual sales. Compared to the order backlog at the end of last year (44.4401 trillion won), this represents a 9.8% increase, indicating a continued upward trend in orders.

Despite the downturn in the construction market, Daewoo Engineering & Construction plans to continue its strategy of solid internal management and expanding into overseas markets for sustained growth.

A company official stated, "Sales and order performance are at a favorable level compared to the initial plan for the year," adding, "We will focus our efforts on securing high-quality orders and risk management during the remaining period to achieve this year's targets."

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