Daewoo E&C 1Q Operating Profit 114.8 Billion KRW... 35% Decrease YoY

Net Income of 91.5 Billion KRW, Down 6.9% Year-on-Year
Sales of 2.4873 Trillion KRW, Down 4.6% Year-on-Year

Daewoo E&C announced on the 30th that it recorded an operating profit of 114.8 billion KRW in the first quarter. This is a 35.0% decrease compared to the same period last year (176.7 billion KRW). The net profit for the period was 91.5 billion KRW, down 6.9% from 98.3 billion KRW in the same period last year.

Daewoo E&C's first-quarter sales amounted to 2.4873 trillion KRW, a 4.6% decrease compared to 2.6081 trillion KRW in the same period last year. By business division, sales were ▲ Housing Construction Division 1.5977 trillion KRW ▲ Civil Engineering Division 547.8 billion KRW ▲ Plant Division 272.0 billion KRW ▲ Other consolidated subsidiaries 69.8 billion KRW.

A Daewoo E&C official stated, "Although the operating profit for the first quarter decreased compared to last year due to the continued impact of high interest rates and rising cost ratios, we are focusing on solid management by recording an operating profit margin of 4.6% even in an unprecedentedly challenging construction management environment. Steady growth and profitability expansion in the non-residential sector are expected, so achieving the business plan by the end of this year seems possible."

New orders amounted to 2.4894 trillion KRW. The company secured orders centered on projects without sales risks, such as the Incheon Ultra-Low Temperature Logistics Center (448.2 billion KRW), Gongju Natural Gas Power Plant main equipment and auxiliary facilities supply (209.1 billion KRW), and Gori Nuclear Power Plant port structure reinforcement work (27.0 billion KRW).

Risk-reducing housing projects such as Seongnam Sujin 1 District redevelopment (779.3 billion KRW) and Seoul Daebang-dong military site private participation public housing project (153.0 billion KRW) were also secured. Daewoo E&C currently holds an order backlog of 45.6572 trillion KRW, which corresponds to 3.9 years of work based on annual sales.

A Daewoo E&C official said, “While actively pursuing orders for numerous urban maintenance projects, we are also focusing our capabilities on securing profitable overseas projects, including in overseas hubs such as Iraq and Libya, as well as the large-scale Czech nuclear power plant project in which we participate as a construction company as part of Team Korea.”