ID :
192001
Thu, 06/30/2011 - 11:40
Auther :
Shortlink :
https://oananews.org//node/192001
The shortlink copeid
S. Korean builders operating profit down 8.2 pct in 2010
SEOUL, June 30 (Yonhap) -- South Korea's construction companies saw their profitability and financial soundness worsen in 2010 from a year earlier because of sluggish domestic demand, a report showed Thursday.
According to the report by the Construction Association of Korea, the combined operating profit of 10,715 firms dropped 8.2 percent from a year earlier to 12.7 trillion won (US$11.9 billion) last year.
Sales decreased 4.7 percent on-year to 260.4 trillion won, with their total assets amounting to 319.9 trillion won as of the end of last year, down 2.3 percent from a year earlier.
The operating profit margin of the surveyed companies averaged 4.89 percent, compared with 5.08 in 2009, due mainly to increased raw material costs, the report said. The margin measures the ratio of operating profit to revenue.
"Weaker demand in the domestic property market and deteriorating financial market conditions pulled down builders' profit margins and hurt their financial soundness," it said.
The debt ratio of the builders went down to 145.12 percent in 2010 from 171.68 percent in 2009, which was attributed to their restructuring efforts amid sluggish domestic demand.
According to the report by the Construction Association of Korea, the combined operating profit of 10,715 firms dropped 8.2 percent from a year earlier to 12.7 trillion won (US$11.9 billion) last year.
Sales decreased 4.7 percent on-year to 260.4 trillion won, with their total assets amounting to 319.9 trillion won as of the end of last year, down 2.3 percent from a year earlier.
The operating profit margin of the surveyed companies averaged 4.89 percent, compared with 5.08 in 2009, due mainly to increased raw material costs, the report said. The margin measures the ratio of operating profit to revenue.
"Weaker demand in the domestic property market and deteriorating financial market conditions pulled down builders' profit margins and hurt their financial soundness," it said.
The debt ratio of the builders went down to 145.12 percent in 2010 from 171.68 percent in 2009, which was attributed to their restructuring efforts amid sluggish domestic demand.
