Daehan Electric Wire recorded the highest quarterly operating profit in its history in the third quarter. This was driven by increased sales of high-margin products based on a strong order backlog. With additional orders reflected from the US, Singapore, and other regions, the company is expected to continue its strong performance going forward.
Daehan Electric Wire announced on the 28th that it posted a provisional consolidated operating profit of 27.2 billion KRW in the third quarter, marking the highest quarterly performance ever. This amount represents a 56% increase compared to the same period last year (17.4 billion KRW). Since adopting the Korean International Financial Reporting Standards (K-IFRS) in 2010 and measuring consolidated quarterly results, this is the highest quarterly operating profit on record. The provisional sales figure was 804.4 billion KRW, up 28% from 630 billion KRW in the same period last year.
The cumulative operating profit from the beginning of this year through the third quarter reached 93.4 billion KRW, a 58% increase compared to 59.1 billion KRW in the same period last year. This already exceeds last year's full-year cumulative operating profit (79.8 billion KRW) by more than 17%. Cumulative sales amounted to 2.4573 trillion KRW, an 18% increase from 2.0883 trillion KRW in the same period last year. This is the highest cumulative sales in 13 years since 2010.
Daehan Electric Wire explained that the continuous realization of sales from high-margin products was a key factor in the increase in performance. The company secured an order backlog of 2.0055 trillion KRW as of the end of the first half, the highest level ever, by continuing to receive orders from the US, Europe, the Middle East, and other regions.
The company expects the strong performance trend to continue in the second half as large-scale project orders keep coming in. In the US alone, it secured projects worth 280 billion KRW in the third quarter, bringing the total annual order backlog to 610 billion KRW. Earlier this month, it signed an additional mega project contract worth 840 billion KRW in Singapore, equivalent to 30% of last year’s annual sales, laying the foundation for further sales expansion.
A Daehan Electric Wire official said, "We will enhance corporate value and firmly establish the foundation for sustainable growth by expanding orders for strategic products such as ultra-high voltage cables with global competitiveness, high-voltage direct current transmission (HVDC), and submarine cables."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
