Daelim Industrial's net profit reached W118.3 bil
DATE 2006.07.06
VIEW 507
Daelim Industrial said yesterday its net profit in 2002 reached 118.3 billion won, up a whacking 272 percent over 2001, with sales increasing by 5.4 percent to a total of 2,652.1 billion won and recurring profit jumping 131 percent to 187.2 billion won.
The company attributed the brilliant performance to the continued boom in the construction market, the reduced financial cost, and equity method gains from its affiliated companies.
As the company continued to reduce its debts to a meager 286.2 billion won, its total liability to equity ratio, which stood at 95.4 percent at the end of 2001, dropped by 7.6% to 87.8 percent at the end of 2002. This indicates that the company has not only top-notch financial status in the domestic construction industry but also among all the Korean companies.
Daelim received new orders totalling 3.37 trillion won in 2002, posting a huge increase of 18% over 2001. Given the stable order portfolio, which consists of 42% backlog from civil works, 31% from housing, 8% from building, and 19% from plant projects, the company is expected to stay on a steady growth path even if the housing market could slow down going forward.
In addition, its formal backlogs, except waiting projects selected as a contractor in reconstruction works, reached 7.5 trillion won at the end of 2002. This year should turn out to be a fairly profitable year for Daelim as it anticipates substantial sales growth from the secured backlogs which include the profitable businesses such as privatized SOC projects. The company also awaits the recovery in petrochemical business, which should also contribute towards an impressive performance in 2003.
