Daewoo Reports Hefty Losses

Daewoo Heavy Industries Co. (DHI)announced a loss in the first- half of this year of 337.7 billion won ($302.9 million), compared with net income of 53.2 billion won in the same period last year. DHI is undergoing a reorganization to divulge itself of money-losing operations, as are many of the large Korean industrial conglomerates. Current plans plans call for a split in the shipbuilding and construction equipment businesses into separate units, leaving the remaining company with nonoperating assets, including stakes in Daewoo Motor Co. The division is set for Sept. 1 after several delays. Sales totaled 2.08 trillion won, down from 3.11 trillion won in the same period in 1999, in part because a stronger won meant dollar-denominated ship sales converted into fewer won in the accounts. The company also sold its rolling stock and aerospace businesses in the past year. During the half year, Daewoo Heavy's shipbuilding business generated 1.35 trillion won of sales, with the remaining 735 billion won of sales coming from its construction equipment unit. DHI Financial Results H1 2000 H1 1999 Sales 2.08 trlnvs 3.11 trln Net -338 54 Pretax -338 72 Extraordinary gain 1 16 mln Extraordinary loss 75 198