Labor Unions Propose Fees on Chinese-Built Ships Calling at U.S. Ports
US Labor unions are calling for a fee to be imposed on vessels constructed in China that dock at US ports in response to what they perceive as unfair shipbuilding...
SEOUL–Daewoo Shipbuilding & Marine Engineering Co.’s (042660.SE) net profit in 2012 plunged 82%, primarily reflecting the decision it made in 2009 to book orders for ships at lower rates to stay afloat in the aftermath of the financial crisis.
In a further setback, the world’s third-largest shipbuilder by sales also lowered its order target for 2013, faced by a supply glut in the shipping industry and a fragile global economy. For the year, DaewooShipbuilding has set an order target of $13 billion, down 9% from its actual achievement of $14.3 billion last year.
Full-year net profit sharply declined to 137 billion Korean won ($125 million) from 743 billion won a year earlier, the shipbuilder said in a regulatory filing. Shipbuilders take years to deliver on orders and their financial accounts are based on the prices at which they take the order.
“Investment losses and provisions for the operation of its overseas unit in Romania dealt a heavy blow to the bottom line,” a company spokesman said by telephone, without elaborating.
In 1997, the company acquired a 51% stake in a Romanian shipbuilding company for 45 billion won. The remaining stake is held by a state-run company in Romania.
Operating profit also fell 55% to 451.6 billion won from 1.013 trillion won. Sales rose 2.5% to 12.565 trillion from 12.258 trillion won.
The company didn’t reveal its quarterly results.
(c) 2013 Dow Jones & Company, Inc.
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
Join the 104,005 members that receive our newsletter.
Have a news tip? Let us know.
Be Informed: Stay updated with the latest maritime news and trends.
Connect: Network with a community of maritime professionals and enthusiasts.
Gain Insights: Receive exclusive content and personal perspectives from our CEO.
Sign UpMaritime and offshore news trusted by our 104,005 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up