(LEAD) Hyundai E and C’s Q2 net down 31.2 pct over raw material price hike

Hyundai Engineering and Construction Co. (Hyundai E and C) said Friday its second-quarter earnings fell over 30 percent from a year earlier due to a rise in raw material costs. Consolidated net profit came to 146.1 billion won (US$105.3 million) in the April-June period, down 31.2 percent from a year earlier, the company said in a regulatory filing. Operating profit tumbled 34.1 percent on-year to 147.3 billion won, while sales rose 20.4 percent to 8.62 trillion won. The company's operating profit fell 15.7 percent short of the average estimate of 174.7 billion won by analysts, as compiled by Yonhap Infomax, the financial data firm of Yonhap News Agency. Hyundai E and C attributed its earnings performance to the continued rise in raw material prices, and additional expenses for improving quality and safety. The company said it was making various efforts to stabilize profitability, such as expanding its business model with new complex development projects. Hyundai E and C said it expects to reach its annual sales target of 29.7 trillion won thanks to the smooth progress of large overseas plant projects, including those in Saudi Arabia and Iraq, as well as its domestic housing and data center projects. Source: Yonhap News Agency