Hyundai E&C comes into the spotlight with its strong sales above market expectations as major builders released weak sales reports amid seemingly prolonged downturn in the construction industry.
Korea’s leading builder said on October 26 that its consolidated sales came to 3.3193 trillion won in the three months ended September 30, and its operating profit and net profit stood at 218.8 billion won and 172.2 billion won, respectively. Thanks to this, the company posted accumulated sales of nine trillion won and orders of over 14 trillion won, helping it take one step closer to achieving this year’s goal.
Among the third quarter earnings of Hyundai E&C, the sales showed continued strength. The 3Q sales were up 12.1 percent over the same period from a year earlier and 4.3 percent compared to the previous quarter, which was attributable to the sales increases in the overseas plant sector, power and energy sectors at home and abroad and Hyundai Engineering. The operating profit fell 19.2 percent over the same period from a year earlier because of the base effect resulting from the improvement in constructability but increased 31.2 percent compare to the previous quarter. This is all the more notable in that it reflected potential losses worth about 45 billion won in the housing sector.
In addition, Hyundai E&C achieved remarkable results at home and abroad as its third quarter orders increased 31.9 percent to 14.2591 trillion won over the same period from a year earlier. The 3Q orders accumulated overseas stood at 6.5 trillion won, which already exceeded last year’s overseas sales valued at 5.1643 trillion won.