Samsung Heavy Industries Q1 net rises despite operating profit fall

SEOUL, April 29 (Yonhap) -- Samsung Heavy Industries Co., a shipbuilding affiliate of Samsung Group, said Friday that its first quarter net profit surged 45.9 percent on-year to 15.9 billion won (US$13.94 million), though its quarterly operating profit shrank 76.8 percent to 6.1 billion won.

Samsung Heavy said its first-quarter sales fell 3.1 percent on-year to 2.53 trillion won, due to the reduction in the number of working days, seasonal factors and rescheduling of its construction of a floating LNG facility.

Samsung Heavy and two other South Korean shipbuilders -- Daewoo Shipbuilding & Marine Engineering Co. and Hyundai Heavy Industries -- racked up a combined loss of some 6.3 trillion won last year, marking the first time that all three lost money.

With the world economy remaining in the doldrums, the Korean shipbuilders have also seen their orders plunge. According to global researcher Clarkson Research Services, the three had an order backlog totaling 27.59 million compensated gross tons as of end-March, the lowest since March 2004.

South Korea is pushing to revamp its shipbuilding, shipping and other ailing industries in a bid to head off any fallout from their troubles in Asia's fourth-largest economy, which is struggling to tackle slumping exports and flaccid consumer spending.
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