Samsung Heavy CEO Resigns After Surprise Loss Forecast

samsung heavy industries
Samsung Heavy Industries shipyard. Photo: Panwasin seemala / Shutterstock.com

South Korean shipbuilder Samsung Heavy Industries has appointed a new chief executive officer after the resignation of the former CEO after forecasting another year of losses for the shipbuilder.

Last week, shares of Samsung Heavy Industry plunged the most on record as the shipbuilder, one of the world’s largest, surprised the market when it forecasted losses in 2017 and 2018 and announced a share sale plan.

According to reports, Samsung Heavy has named Joonou Nam as its new chief executive after the former CEO, Park Dae-young, offered his resignation from the company. Nam previously oversaw Samsung Heavy’s shipyard in Geoje, South Korea.

Last week, Samsung Heavy said it expects operating losses to reach 490 billion won in 2017 and 240 billion won in 2018, despite analysts’ calls for an operating profit this year. 

“Falling demand for orders, expected losses from some contracts won this year and higher raw material costs have led the company to forecast losses for this year and next,” Samsung Heavy said in a statement Wednesday. “We expect the situation to improve in 2019.”

Read more about Samsung’s surprise forecast: Samsung Heavy Industries Shares Take Record Dive on Share Sale, Loss Forecast