[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) announced on the 29th that its IFRS consolidated sales for the second quarter of this year are expected to be KRW 1.9223 trillion, with an operating profit of KRW 229 billion. The operating profit margin is 11.9%, which is among the highest in the construction industry.
With the company split this year, DL E&C set an annual sales target of KRW 7.8 trillion and an operating profit target of KRW 830 billion. The actual second-quarter sales are in line with the target (KRW 1.9 trillion), and the operating profit appears to exceed the target (KRW 190 billion) by 20.5%.
A DL E&C official explained, "From the second half of the year, as construction at newly started sites accelerates, we expect growth in sales and operating profit."
On a consolidated basis, new orders in the second quarter amounted to KRW 1.8041 trillion, recording a total of KRW 3.2744 trillion in the first half of the year. In the housing sector, numerous projects scheduled to be recognized as orders this year through permits or main contract signings have been secured, and the overseas plant sector is also showing strong order performance, so growth in future orders and sales is expected to continue.
Financial stability remains at the highest level in the construction industry. As of the end of last month, the debt ratio was 100%, and net cash amounted to KRW 1.266 trillion. Cash and cash equivalents increased by KRW 396 billion compared to the beginning of the year.
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