Hyundai E&C’s proven capability of managing risks enabled the company to report a solid performance despite the continuing market slowdown. Korea’s primary builder announced on April 26 that in the first three months of this year, its consolidated sales rose to 5.8 percent to 2.8612 trillion won, operating profit 21.9 percent to 178.6 billion won and net profit 19.9 percent to 149.7 billion won over the same period in the previous year.
The industry is paying special attention to the builder’s first quarter result as its local competitors posted losses one after another. Notably, at a time when one of the biggest reasons why major construction companies are suffering losses lies in the poor management of overseas construction sites, Hyundai E&C showed its prowess in risk management by selectively conducting higher value-added projects and making continuous efforts to reduce costs.
The first quarter sales increased 5.8 percent year on year thanks to the large-scale projects which began in earnest in Saudi Arabia and Vietnam and a strong growth in plant and power divisions at home.
Operating profit and net profit during the term jumped because the company has made sustained efforts to improve financial soundness since it became a single family of Hyundai Motor Group. Moreover, as of the end of March, order backlog increased 2.9 percent to 47.5673 trillion won with 4.3160-trillion-won new orders received at home and abroad in the three months.