Decline In Offshore Projects Weigh Down Hyundai Heavy 3Q Net

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October 27, 2011

SEOUL (Dow Jones)–Hyundai Heavy Industries Co. (009540.SE) on Thursday reported a 30% fall in third-quarter net profit due mainly to a decline in lucrative offshore facility projects.

“Demand for shipbuilding, vessel engines and construction equipment increased but the number of offshore projects decreased weighing down the quarterly results,” company spokesman Kim Ki-young said by telephone.

Net profit for the three months ended Sept. 30 fell to KRW432.8 billion ($388 million) from KRW618.0 billion a year earlier, the company said in a statement.

Operating profit declined 36% to KRW537.7 billion in the July-September quarter from KRW840.5 billion previously. Sales rose 11% to KRW5.907 trillion from KRW5.308 trillion.

From January to September, net profit fell 6.7% to KRW1.875 trillion from KRW2.009 trillion in the same period of last year. Operating profit declined 11% to KRW2.208 trillion, while sales were up 14% to KRW18.269 trillion.

Helped by demand for high-end ships such as drill ships and liquefied natural gas carriers, the world’s No. 1 shipbuilder by orders posted $22 billion in new orders for the first nine months, or 83% of its order target of $26.6 billion for the year.

-By Kyong-Ae Choi, Dow Jones Newswires

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