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(2nd LD) Korea Shipbuilding swings to loss in Q3 on stronger won

All News 16:23 October 30, 2020

(ATTN: ADDS more details in last 4 paras)
By Nam Kwang-sik

SEOUL, Oct. 30 (Yonhap) -- Korea Shipbuilding & Offshore Engineering Co. said Friday that it swung to a net loss in the third quarter from a year ago due to the stronger local currency.

Net losses came to 77 billion won (US$68.3 million) in the July-September period, compared with a profit of 20.4 billion won a year earlier, Korea Shipbuilding said in an emailed statement.

Sales fell 5 percent to 3.46 trillion won in the three-month period and operating profit rose 34 percent to 40.7 billion won.

"The appreciation of the won against the U.S. dollar led to a net loss, while increased orders of lucrative ships and cost-cutting efforts were the main reason for an operating profit," the company said.

This photo provided by the Korea Shipbuilding & Offshore Engineering Co. on Aug. 24, 2020, shows a liquefied natural gas-propelled ship built by Hyundai Samho Heavy Industries Co. (PHOTO NOT FOR SALE) (Yonhap)

Korea Shipbuilding's three subsidiaries suffered extended losses or returned to the red in the third quarter.

Korea Shipbuilding has Hyundai Mipo Dockyard Co., Hyundai Heavy Industries Co. and Hyundai Samho Heavy Industries Co. under its wing.

Hyundai Heavy's net loss rose to 73.9 billion won in the period compared with a net loss of 39.6 billion won a year ago, excluding profits from its units, with Hyundai Mipo's net profit down 34 percent to 16 billion won

Hyundai Samho swung to a net loss of 4.4 billion won in the third quarter from a net profit of 35.6 billion won a year ago.

Korea Shipbuilding revised down its order target to $11 billion for the year from $15.7 billion earlier.

It received US$4.5 billion worth of orders in the first nine months, achieving only 29 percent of this year's target.

Korea Shipbuilding's net profit fell 63 percent to 88.3 billion won in the January-September period from a year ago.

The company closed at 78,400 won, down 1.75 percent from the previous day, on the Seoul bourse.

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