Kolon Global’s Q3 operating profit rises 23.5% year on year to 34.2 billion won

\ \ [Financial News] Kolon Global posted operating profit of 34.2 billion won in the third quarter of this year, up 23.5% from the same period a year earlier. The improvement reflected a lower cost ratio in the construction division and increased progress at major sites, as well as the effect of integrating the Leisure and AM businesses through a merger.
On the 12th, Kolon Global said it posted consolidated revenue of 747.8 billion won, operating profit of 34.2 billion won and net profit of 9.7 billion won in the third quarter. Revenue was up 23.1% from the same period a year earlier.
The construction division recorded revenue of 624.5 billion won and operating profit of 31.6 billion won, up 17.1% and 21.0%, respectively. Its cost ratio fell by 1.6 percentage points to 87.4%, from 89.0% in the same period last year.
The construction division’s cost ratio, which had risen to 96.8% in the fourth quarter of last year, continued to improve, falling to 89.5% in the first quarter and 87.7% in the second quarter of this year. Increased progress at major high-tech sites, including Korean Air’s engine maintenance plant and Tokyo Electron Korea Ltd., also supported revenue growth.
New orders in the third quarter totaled 792.1 billion won, bringing cumulative orders to 1.78 trillion won. Major projects included the Ansan Hyundai First Apartment project (218.3 billion won), the Majang-dong District 3 small-scale housing renewal project (103.5 billion won), construction of an ancillary building at Samsung Electronics’ Pyeongtaek P5 site (84.1 billion won), and the Hanam Gyosan environmental basic facilities project (37.4 billion won).
The Leisure and AM division posted revenue of 79.4 billion won and operating profit of 6.7 billion won, reflecting the integration of LSI and MOD through a merger. The figures were up 398% and 646%, respectively, from the same period a year earlier.
Cash and cash equivalents at the end of the third quarter totaled 318.9 billion won, up 117.7 billion won from the previous quarter.
A Kolon Global official said, “Continued progress at major construction sites and improvements in the cost ratio, together with the merger effect in the Leisure and AM division, drove growth in both revenue and operating profit.” The official added, “We plan to strengthen the competitiveness of each business division and continue to expand the foundation for stable growth through operations focused on profitability.”

[email protected] Choi Ga-young Reporter