Lotte Engineering & Construction, operating profit in the third quarter was 34.9 billion won... Cumulative amount exceeds 200 billion won

Lotte Engineering & Construction announced on the 13th that it recorded sales of 1.4761 trillion won and operating profit of 34.9 billion won on a consolidated basis in the third quarter of this year.

As of the third quarter of this year, cumulative operating profit was 207.7 billion won, an increase of 126% from the same period last year.

Lotte E&C explained, “The improvement of company-wide cost structure, selective orders from high-quality business sites, and on-site process management were combined, resulting in a clear cost improvement effect centered on the housing business.”

Accordingly, the cumulative cost of sales ratio in the third quarter of this year was 89.5%, down 4.1 percentage points compared to the same period last year (93.6%).

In addition, the debt ratio, which was 186.7% at the end of last year, decreased by 20.4 percentage points to 166.3% as of the third quarter, and project financing (PF) contingent liabilities decreased from approximately KRW 3.2 trillion at the end of last year to around KRW 2.3 trillion as of the third quarter.

The company expects contingent liabilities to decrease to 2.1 trillion won by the end of this year.

Thanks to the improvement in financial structure, this year's accumulated orders for urban redevelopment projects amounted to KRW 4.011 trillion, exceeding last year's overall performance (KRW 3.3668 trillion).

A Lotte Engineering & Construction official said, "Improving our management structure with a focus on profitability-oriented business operations is leading to practical results. We will accelerate our efforts to secure future competitiveness based on our excellent order winning strategy and stable financial structure."