Profits Fall at Daewoo Shipbuilding

Daewoo Shipbuilding & Marine Engineering Co, the world’s second-largest shipbuilder, reported net income in July declined 34 percent to $$8.1 million from a year earlier. Operating profit fell 58 percent to 10 billion won, with sales declining 30 percent to 322.3 billion won, according to a report in the New Straight Times, Malaysia.

Soaring steel and energy prices are potential reasons for the fall. Daewoo received $4.97 billion of orders for 32 ships and offshore plants in the first seven months of this year, bringing its backlog of orders to $15.61 billion as of July 31.