GS Engineering predicts $500 million in profits

GS Engineering & Construction Co., Korea’s fourth-largest builder, expects its operating profit to rise 16 percent this year as it wins more orders for housing, factories and others.
The operating profit will climb to 468.7 billion won ($500 million) from 403.4 billion won last year and 335.6 billion won in 2005, the Seoul-based company said in a regulatory filing yesterday. The company said it will predict its net income later.
GS Engineering and other Korean builders are garnering orders at home and overseas as global economic growth spurs demand for roads, homes and factories, helping to widen margins of operating profit, a measure of sales minus the cost of sold goods and administrative expenses.
The company expects 10.4 trillion won in new contracts this year, 11.8 trillion won in 2008 and 12 trillion in 2010, GS Engineering said yesterday. Sales may rise to 6.5 trillion won this year from 5.8 trillion won last year.