Hyundai E&C sees earnings slide 18% due to earlier sale

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Hyundai E&C sees earnings slide 18% due to earlier sale

Hyundai Engineering & Construction, the nation’s top builder, said yesterday that its 2012 earnings dropped 18 percent from a year earlier due to a one-off stake sale earlier in 2011.

Its consolidated net profit came to 560 billion won ($521 million) last year, compared with 685.1 billion won in 2011, the company said in a regulatory filing.

Sales, however, jumped 11.8 percent on-year to 13.3 trillion won in 2012, and operating profit increased 3.4 percent on-year to 760 billion won.

The company said the on-year drop in net income resulted from a high comparison base in 2011. The builder sold its stake in a circular highway around Seoul in 2011, boosting its net income.

It marked the third straight year that sales have surpassed 10 trillion won due to increases in orders for overseas plants and sales of the company’s affiliates.

The company received 21.25 trillion worth of orders in 2012, up 26.7 percent from a year earlier. The builder has won large-scale deals in Latin America as well as the Middle East and Southeast Asia.

Hyundai E&C has vowed to ensure that its overseas business accounts for 65 percent of its total sales this year, up from 60 percent last year, by diversifying its business in Africa, former Soviet Republics and Latin America.
For decades, oil-rich Middle Eastern countries have been the largest market for Hyundai E&C and other Korean builders.

Hyundai E&C said it is targeting 22.15 trillion in orders and 13.85 trillion in sales this year.

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