GS Construction Q3 Sales Reach 3.108 Trillion KRW... Operating Profit Decreases by 52%

GS Construction announced on the 30th that its sales for the third quarter reached 3.108 trillion KRW, with an operating profit of 60 billion KRW. Sales increased by 5.2% compared to the same period last year, but operating profit decreased by 52.0% year-on-year.

This was due to the conservative reflection of cost rates amid worsening external conditions such as continuous raw material price increases and rising labor costs, as well as costs related to strengthening quality and safety at domestic business sites. New orders recorded 1.979 trillion KRW, a 57.7% decrease compared to the same period last year, affected by the domestic real estate market downturn.

Looking at third-quarter sales by business division, the Architecture and Housing Business Division increased by 3.7%, from 2.182 trillion KRW in the third quarter of last year to 2.262 trillion KRW. The Infrastructure Business Division rose by 13.4%, from 261 billion KRW to 296 billion KRW. The New Business Division grew by 40.5%, from 262 billion KRW to 368 billion KRW.

New orders continued to show strong performance in the Architecture and Housing Business Division with projects such as the Suwon Yeongtong-dong Apartment Construction Project (159 billion KRW) and the LG Energy Solution Ochang Energy Plant Battery Production Construction (158 billion KRW), as well as in the Plant Business Division with the Saudi Yanbu Refinery SRU Upgrade Project (212 billion KRW). Notably, the New Business Division contributed to overseas orders with projects like the GS Inima UAE Shuweihat 4 Seawater Desalination Project (438 billion KRW).

Meanwhile, GS Construction's cumulative third-quarter results were sales of 10.115 trillion KRW, operating loss of 195 billion KRW, pre-tax loss of 169 billion KRW, and new orders of 7.669 trillion KRW. Cumulative third-quarter sales steadily grew by 20.8% compared to the same period last year, while cumulative operating profit turned to a loss year-on-year due to the impact of one-time expenses reflected in the previous quarter.

A GS Construction official stated, “Despite various difficult domestic and international management conditions, sales continue to increase, securing momentum for growth,” and added, “We will lay the foundation for a new leap forward by promoting business based on profitability and growth potential and strengthening business capabilities.”

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