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 Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Deep Sea Supply takes Delivery of 'Sea Triumph'

The Deep Sea Supply  took delivery of the newbuilding Platform Supply Vessel 'Sea Triumph'  on Thursday 18 September.  The vessels 'Sea Triumph' is a STX 05-L

Lilaas Engages Imtra for N. American Distribution

Strong prospects in the North American marine equipment market have triggered a new importation and distribution agreement between control specialist Lilaas

Ingram Barge Order 20 Tank Barges for 2015

Ingram Barge Company say they will be building 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank barges have come through acquisitions,

Ship Repair & Conversion

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

3D Scanning Speeds Up Drag Boat Racing

NVision, Inc., a company in 3D laser scanning and reverse engineering for over 24 years, said it was able to help a motorsports boat designer optimize the design

Cook Joins Horizon Shipbuilding as Operations VP

Horizon Shipbuilding, Inc. announced that Mickey Cook has joined the corporation as the Vice President of Operations for the Bayou La Batre shipyard. Cook, one of the founders of C & G Boatworks,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1050 sec (10 req/sec)