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

Shipbuilding

Fincantieri Delivers Carnival Vista

Carnival Vista, the new flagship of the fleet of Carnival Cruise Line, brand of the Carnival Group, was delivered today at Fincantieri’s shipyard in Monfalcone.

Samsung Heavy Loses $4.6-bln FLNG Order

South Korea’s shipbuilder Samsung Heavy Industries (SHI), the world’s third-largest shipbuilder,  has received a contract termination for three floating liquefied

Englishman: 11th Humber Tug Bears the Name

Humber tugboat operator SMS Towage has drawn on an old name for the latest addition to its fleet. The new Englishman is the 11th Humber tug to bear the title, in

Ship Repair & Conversion

How France Sank Japan's Sub Dream

Ousting of Japan ally PM Abbott opened door to rivals; Tokyo slow to respond to new competitive process. In 2014, a blossoming friendship between Australian

ANZAC Class Frigate Sustainment Deal Signed

The Turnbull Government has signed a long-term contract for the sustainment of ANZAC Class Frigates centred in Western Australia.   The strategic partnership

Korean Shipbuilders Maintain Top Ranks, Despite Troubles

Korea's 'Big Three' shipbuilders are still the world's three biggest by order backlog, despite their troubled management, according to data from UK-based Clarkson Research Services.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar
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: 0.1261 sec (8 req/sec)