DL E&C

Daelim Switching to the DL System,
Records KRW 1 Trillion in Operating Profit for Two Consecutive Years

 

DL Holdings announced on January 28 that it expects KRW 10.2650 trillion in sales and KRW 1.1781 trillion in operating profit based on the period before DL E&C was divided from the company through an annual interim earnings release for 2020.
 

Amid the continuing tough business situation due to COVID-19, the construction business played a pivotal role in posting a record-high operating profit by recording KRW 741.3 billion in separate operating profit. Especially the housing business posted the highest profit ratio in the industry and became the source of profitability. The consolidated subsidiaries including Daelim E&C and Cariflex recorded KRW 373.1 billion in total operating profit, thereby contributing to the favorable earnings.
 

Last year, the Petrochemical Business Division (currently DL Chemical) and the equity method-applied Yeocheon NCC posted operating profit of KRW 63.7 billion and KRW 307.2 billion in 2020, a 15% and a 32% reduction, respectively, compared to 2019 due to COVID-19 and low oil prices. Nonetheless, Poly Mirae, which produces polypropylene as a major raw material for mask filter additive, recorded KRW 125.8 billion in operating profit in 2020, up 44% compared to 2019, thanks to an increase in product sales. 
 

Thanks to the favorable tone of orders in the housing and civil works sectors and subsidiary DL E&C, consolidated new orders stood at KRW 10.1210 trillion, up 50% compared to 2019. Boosted by the favorable order winning tone, the balance of orders at the end of 2020 showed KRW 22.0341 trillion, up KRW 708.3 billion, compared to the previous year-end.
 

The consolidated debt ratio of DL Holdings based on the previous year-end prior to the company division stood at 97.5%, a 2.1%p improvement compared to the end of 2019; thus, the top-level financial soundness has been maintained in the construction industry.
 

DL E&C and DL Holdings each presented their own earnings targets in 2021 after division. In 2021, DL E&C targets KRW 7.8 trillion in sales and KRW 830 in billion operating profit, whereas DL Holdings aims for KRW 2 trillion in sales and KRW 210 billion in operating profit.