DL E&C's First Earnings After Split, Q1 Operating Profit of 199.8 Billion Won

Sales and Operating Profit Decrease by 18.4% and 25.2% Respectively
"Temporary Sales Decline Due to Completion of Large-Scale Housing Projects"

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) announced on the 11th through a preliminary earnings report that its consolidated sales for the first quarter of this year are expected to be 1.6996 trillion KRW, with an operating profit of 199.8 billion KRW. Compared to the same period last year, sales and operating profit decreased by 18.4% and 25.2%, respectively.

DL E&C explained, "Although there was a temporary decrease in sales due to the completion of large-scale housing projects, sales are expected to normalize as construction of newly launched projects accelerates in the second half of the year."

Despite the base effect from a one-time profit in the plant division in the same period last year, DL E&C’s separate cost ratio recorded a favorable 81.3%. Pre-tax profit and net profit were 231.1 billion KRW and 174.6 billion KRW, respectively.

On a consolidated basis, new orders increased by 77.2% compared to the same period last year, reaching 1.4703 trillion KRW. Thanks to overseas plant orders, DL E&C recorded new orders worth 972.7 billion KRW. DL Construction also achieved a significant increase in new orders, reaching 497.6 billion KRW compared to the same period last year. The debt ratio stood at 103.6%, and net cash amounted to 1.4801 trillion KRW.

DL E&C aims for annual sales of 7.8 trillion KRW and an operating profit of 830 billion KRW this year. A DL E&C official stated, “First-quarter orders, sales, and operating profit were achieved at the expected levels,” adding, “Since sales of over 2 trillion KRW per quarter are expected to be maintained from the second quarter onward, we anticipate exceeding the annual management goals for sales and operating profit.”