Hyundai Heavy 2Q Net Down 17% On Year At KRW538.8 Bln

Hyundai Heavy Industries shipyard

Image (c) Hyundai Heavy Industries

SEOUL (Dow Jones)–Hyundai Heavy Industries Co. (009540.SE), the world’s largest shipbuilder by orders, said Wednesday its second-quarter net profit fell 17% on year as high thick steel plate costs weighed on the shipbuilding business.

“There were few deliveries of high-end offshore facilities (in the second quarter) and, in particular, demand for transformers in the electro-electric systems division was weak,” a company spokesman said by telephone.

Net profit for the three months ended June 30 fell to KRW538.8 billion ($511 million) from KRW645.4 billion a year earlier. Operating profit declined 10% to KRW677 billion from KRW752.2 billion, while sales were up 15% to KRW6.055 trillion from KRW5.283 trillion.

Quarter-on-quarter, net profit plunged 40% from KRW903 billion, with operating profit down 32% from KRW991.8 billion and sales down 4.0% from KRW6.306 trillion.

In the first six months, the Ulsan-based shipyard achieved 68% of its annual order target of $26.63 billion for its seven business divisions–shipbuilding, offshore & engineering, industrial plant & engineering, engine & machinery, electro electric systems, construction equipment, and green energy.

-By Kyong-Ae Choi, Dow Jones Newswires