Hyundai Heavy Will Miss Profit Target

Tuesday, August 14, 2001
Hyundai Heavy Industries, the world's largest shipbuilder, will not meet its full-year profit target after reporting a half-year net loss of 53.1 billion won ($41.68 million), mainly due to a write-off. "Our net profit will be around 100 billion won or slightly less because we have to clean up losses coming from the cancellation of shares at Hyundai Petrochemical," a spokesman said. The original earnings target was 300 billion won. However, analysts said the longer term outlook was bright. Hyundai Heavy wrote off 105 billion won, representing its entire 49.87 percent stake in unlisted Hyundai Petrochemical. Hanvit Bank, main creditor of the petrochemical company, had asked Hyundai Heavy to cancel its shares in Hyundai Petrochemical to help revive the troubled petrochemicals firm. Hyundai Heavy's earnings before interest and tax, or operating profit, fell to 311 billion won in the first half from 488.37 billion won the same period last year. Pre-tax, or current, losses were 65.5 billion won in the first half against a profit of 64.0 billion won a year earlier. The spokesman said profitability had also worsened because orders for ships delivered in the first half had been received in 1999 when builders had to offer big discounts due to low demand. Despite backlogged orders of $6.6 billion, enough to keep its yard fully occupied for 2.5 years, Hyundai Heavy incurred a net loss of 81.9 billion won for the first quarter due to losses of 260 billion won at sister firms. But analysts said the future was bright, as Korean yards would benefit from tightening environmental rules that would boost demand for double-hulled tankers to replace single-hulled ones and as demand increased for liquefied natural gas carriers. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

SAFE Boats Delivers First CIV for Air and Marine Operations

SAFE Boats International (SBI), a manufacturer of aluminum boats located in Bremerton, Wash., has completed the first Coastal Interceptor Vessel (CIV) on contract from U.

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Ship Repair & Conversion

Hansa Offenburg, Hansa Drakenburg Sail Scale-free

Leonhardt & Blumberg was founded in 1903 and has managed more than 180 vessels, the majority of which were general cargo vessels and bulk carriers. Today the company

Haven Marine Signs Service Contract with Svitzer

Haven Marine Services informs it has signed a five year contract with Svitzer which will see the yard service the requirements of Svitzer’s vessels within the Bristol Channel and Irish Sea areas.

BWTS Refit for Netherlands Naval Vessels

The Defense Material Organization has awarded three contracts to Goltens Worldwide’s Green Technologies business unit for the engineering and turnkey installation

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0659 sec (15 req/sec)