Paratech Achieves Positive Operating and Net Profit in 1Q... Sales Up 28% YoY

Fire equipment specialist Paratech succeeded in turning a profit in both operating income and net income in the first quarter compared to the same period last year. Paratech announced on the 16th that its consolidated sales for the first quarter reached 69.4 billion KRW, a 28.2% increase from the same period last year. During the same period, operating income and net income turned positive, achieving 1.9 billion KRW and 1.2 billion KRW, respectively.

On a separate basis, sales reached 54.9 billion KRW, up 6.7% from the same period last year, while operating income and net income also turned positive at 1.5 billion KRW and 900 million KRW, respectively.

Paratech achieved strong first-quarter results through increased sales based on large-scale new orders and cost reductions. With new orders for fire equipment from major domestic corporations reflected in sales, the fire equipment division recorded sales of 36.2 billion KRW, a sharp increase of 89.5% compared to the previous quarter. The company explained that it also succeeded in achieving operating profit by improving the cost of sales ratio and reducing selling and administrative expenses.

A Paratech official said, “Despite rising raw material prices, our efforts to reduce costs resulted in turning operating profit positive in the first quarter,” adding, “With the mandatory installation of vehicle fire extinguishers for passenger cars with five or more seats starting this December, we will continue to maintain profitability this year through new product development and business expansion.”

The revised “Fire Facilities Installation and Management Act” expands the mandatory requirement for vehicle fire extinguishers from vehicles with seven or more seats to those with five or more seats. The amended law is scheduled to take effect on December 1.

Meanwhile, in addition to its core business, Paratech’s subsidiary also showed growth. Its subsidiary Hurim Construction achieved sales of 13 billion KRW in the first quarter, an 85.5% increase compared to the same period last year.