GS E&C (006360.KS) reported first-quarter operating profit of 73.5 billion won ($54 million), up 4.4% from a year earlier, the company said in a regulatory filing. Revenue fell 21.6% during the same period to 2.4 trillion won.
By business division, the architecture and housing unit posted revenue of 1.42 trillion won, breaking below the 2 trillion won mark. The figure represents a 29.3% decline from 2.01 trillion won a year earlier. The plant division recorded 253.6 billion won, while the infrastructure division posted 326.4 billion won in revenue. The company explained that housing supply declined amid the recent downturn in the construction market, weighing on the architecture and housing unit's revenue, but added that it plans to supply approximately 10,000 units in the first half of this year and expects revenue to rebound once construction on those projects begins in earnest.
First-quarter new orders totaled 2.6 trillion won. The architecture and housing division secured contracts including the Osan Yangsan District 4 apartment project (497.1 billion won) and the Geoyeo Saemaeul housing redevelopment project (326.3 billion won), while Danwood, the company's Poland-based modular housing subsidiary, booked 119.1 billion won in new orders.
With contractor selections expected at several major urban redevelopment sites this year, including areas along the Han River in Seoul, GS E&C has secured more than 4 trillion won in urban redevelopment contracts to date on the strength of its Xi brand. The recent wins include the 2.15 trillion won Seongsu Strategic Redevelopment District No. 1 housing redevelopment project, and new order figures are expected to grow further.
"Amid continued uncertainty in both domestic and external environments, we will focus on securing profitability based on fundamentals and identifying future growth drivers, drawing on the capabilities and successful track record we have built over many years, to solidify the foundation for sustainable management," a GS E&C official said.
