Dongbu Corporation said on the 15th that its operating profit on a consolidation basis came to 10.1 billion won in the first quarter of this year, remaining in the black despite a slump in the construction market.
Revenue rose 4.4% on-year to 434.6 billion won. In the first quarter of this year, growth in revenue from contracted construction was notable. On a consolidation basis, contracted construction revenue was 394.5 billion won, up 38.2 billion won from the same period a year earlier (356.3 billion won).
Operating profit remained in the black even as the construction downturn and cost burdens persisted. Dongbu Corporation, helped by improved results at equity-accounted affiliate HJ Shipbuilding & Construction, recognized 4.8 billion won in equity-method gains on a consolidation basis in the first quarter.
Net profit was 16.0 billion won, similar to the year-earlier 16.7 billion won. Lower selling and administrative expenses, reduced financial expenses, smaller other expenses, and improvements in equity-method gains worked together.
A Dongbu Corporation official said, "The first-quarter results are meaningful in that we maintained sales growth in our core business and stayed in the black despite the ongoing construction slump and cost pressures," adding, "We will continue to convert our order backlog into sales and results, strengthen profitability-focused, sound management through cost control and expense efficiency, and enhance the performance of investments in affiliates to expand a stable profit-generation base."