SEOUL–Hyundai Heavy Industries Co. (009540.SE), the world’s largest shipbuilder by sales, on Thursday posted a 35% slump in third-quarter operating profit as a sharp fall in orders in the wake of the financial crisis put a dent in profits.
Analysts say a downward trend in operating profit is likely to continue through the fourth quarter as most high-end ship orders received before the financial crisis have already been delivered.
The company received $13.1 billion worth of orders only in the January-September period owing to the world-wide economic slowdown, down 40% from a year earlier. It had targeted $30.552 billion in orders this year.
Hyundai Heavy won’t achieve its annual order target owing to the world-wide economic slowdown, Lee Jae-won, an analyst at Tongyang Securities, said.
Tongyang Securities expects the company to finish the year with orders of $22.8 billion.
Consolidated operating profit for the three months ended Sept. 30 plunged to 593.9 billion won ($538 million) from KRW915.4 billion, the company said in a statement.
Sales were up 0.8% on year to KRW13.199 trillion from KRW13.094 trillion.
Third-quarter net profit rose 30% to KRW729.5 billion from KRW562.6 billion on one-time gains, the company said.
In July, Hyundai Heavy sold a 1.45% stake in Hyundai Motor Co. (005380.SE) valued at KRW746.4 billion.
– Kyong-Ae Choi, (c) 2012 Dow Jones & Company
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,198 members that receive our newsletter.
Have a news tip? Let us know.
A Russian Navy frigate equipped with new generation hypersonic cruise missiles has conducted drills in the English Channel and is carrying out tasks in the Atlantic Ocean, Russian news agencies reported on Tuesday.
(Bloomberg) — Chinese lawmakers got a head start on the US election this week as they gathered to vote on the largest fiscal package since the pandemic. But now that...
German liner Hapag-Lloyd has inked contracts with two prominent Chinese shipyards for 24 new state-of-the-art containerships valued at around US $4 billion The ambitious order includes 12 vessels from Yangzijiang...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,198 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
