Connect to share and comment

Some builders likely to suffer losses in Q2 over lower-priced overseas deals

PlacardEnlarge
(Globalpost/GlobalPost)

SEOUL, July 16 (Yonhap) -- Some major builders in the country are likely to suffer losses in the second quarter as lower-priced overseas deals they clinched in recent years could continue to cut into their bottom line, industry officials said Tuesday.

Samsung Engineering Co., one of South Korea's largest industrial plant builders, has been recently told by its parent Samsung Group to stay conservative in accounting, a practice that requires a thorough verification of any profit and recognizes all probable losses, according to the officials.

The move raised the possibility that Samsung Engineering could post a net loss in the second quarter in contrast to its previous expectations that it could swing to a net profit in the second quarter.

In April, Samsung Engineering said its net loss reached 180.4 billion won (US$161 million) in the three months through March, a sharp decline from a profit of 144.4 billion won a year earlier.

Meanwhile, analysts estimated that GS Engineering

http://www.globalpost.com/dispatch/news/yonhap-news-agency/130716/some-builders-likely-suffer-losses-q2-over-lower-priced-over