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(LEAD) Hanwha Aerospace Q1 net losses widen on currency losses

All News 16:32 May 12, 2020

(ATTN: REWRITES throughout; ADDS photo)

SEOUL, May 12 (Yonhap) -- Hanwha Aerospace Co., a defense industry unit of South Korea's Hanwha Group, said Tuesday its first-quarter net losses widened compared to a year earlier due to currency-related losses.

Net losses deepened to 9.1 billion won (US$7.4 million) in the January-March quarter from 7.5 billion won in the year-ago period, the company said in a statement.

"The value of dollar-denominated debts increased in the first quarter due to the won's weakness against the dollar. It weighed on the quarterly results," a company spokesman said.

The dollar rose to an average of 1,193.60 won in the first quarter from 1,125.08 won a year earlier, according to the Bank of Korea.

This file photo provided by Hanwha Aerospace shows the manufacturing process of an aircraft engine at the company's plant in Changwon, 400 kilometers south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

The company shifted to an operating profit of 3.2 billion won in the first quarter from an operating loss of 9.09 billion won a year ago. Sales rose 7.6 percent to 1.03 trillion won from 954.8 billion won over the cited period, it said.

Hanwha Aerospace's acquisition of U.S. aircraft engine maker EDAC Technologies Holding Company and enhanced profitability in long-term airplane parts supply deals helped the company swing to an operating profit in the March quarter, the spokesman said.

Hanwha Aerospace expects the world's aircraft engine market to grow an average of 6 percent per year to reach $54.2 billion in 2025 on the back of rising travel demand and increased freight cargo.

Its parent firm Hanwha Group announced last year that it will invest 4 trillion won in its aircraft parts and defense industry businesses by 2022.

EDAC Technologies Holding Company owns U.S. aircraft engine manufacturer EDAC Technologies LLC, which has mainly supplied aircraft engine components like integrally bladed rotors (IBR) and cases to U.S. aircraft engine makers such as Pratt & Whitney and General Electric.

kyongae.choi@yna.co.kr
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