South Korean construction companies appeared to be looking for a turnaround on the back of a recovery in the housing industry to recover from massive losses they suffered from slow home market conditions and faltering overseas projects.
The local construction industry has grappled with a deep-set recession over the past few years as players struggled with high-risk property development projects, money-losing overseas projects and unsold homes. Many of the firms shocked investors with worse-than-expected earnings last year.
But things are starting to look up. Major builders reported better-than-expected earnings during the first quarter as the local housing market is on a recovery path, bolstered by eased regulations and stabilizing home prices.
Hyundai Engineering & Construction, the country’s top builder, reported an operating income of 188 billion won ($182 million) in the first quarter, a 5 percent increase from the same period a year earlier.
Samsung C&T Corp., a construction unit of Samsung Group, also posted a 71 percent on-year rise in its first-quarter operating income, with 115 billion won.
