Doosan Engineering & Construction Co. said on the 14th that operating profit on a consolidation basis in the first half of this year came to 72.7 billion won, up about 35.6% from the same period a year earlier (53.6 billion won).
Sales for the same period were 764.5 billion won, down 12.0% from a year earlier. Net profit rose 47.1% from 35.7 billion won a year earlier to 52.5 billion won.
In particular, the first-half cost ratio improved to 84.8%, a 4.7 percentage-point (p) improvement from 89.5% a year earlier. Accordingly, the operating margin rose 3.3 percentage points, from 6.2% a year earlier to 9.5%.
A Doosan Engineering & Construction Co. official said, "As the processes at business sites selectively won with profitability in mind have gotten into full swing, the results of that strategy are translating into performance," adding, "In the housing business, we are continuing a selective order-taking stance that considers profitability and business stability."
With sales at major regional business sites largely wrapped up, the company said it is lowering related risks while expanding its business base centered on Seoul and the greater metropolitan area. On the financial side, the improvement trend is continuing as move-ins begin in earnest at major business sites where sales have been completed.
Order wins also stand out. Doosan Engineering & Construction Co. secured construction rights for urban renewal projects worth about 2.6 trillion won in the first half alone by winning numerous large-scale maintenance projects centered in the greater Seoul area. In the second half, the company plans to continue active order-taking focused on private urban renewal projects and public housing projects.
In addition, after being selected as the constructor for business sites No. 1 and No. 2 of the Seoul downtown public housing complex projects, Doosan Engineering & Construction Co. achieved the first project implementation plan approval among public redevelopment complexes in the Sinseol 1 district. Based on this execution capability, the company plans to actively participate in additional public housing tenders, including the Bucheon Wonmi District downtown complex project.