Hyundai Heavy Industries posts profits of 618.7 bln won for 1Q 2017
Hyundai Heavy Industries (HHI) issued a public disclosure of its 1Q 2017 consolidated earnings today. According to a regulatory filing, during the January-March period HHI racked up 10.0756 trillion won in consolidated sales while consolidated operating income stood at 618.7 billion won, 90.3% up from last year’s comparable period, posting profits for five straight quarters.
HHI mainly attributes the whooping quarterly operating profit increase to 127.1 billion won operating profits from HHI’s Shipbuilding Division which is 251% up from the first three months last year. The strong earnings of shipbuilding business were attributable to an increased building volume of high value-added ships that HHI has competitive edge on, stabilization of manufacturing processes, and cost reduction efforts. Offshore & Engineering Division and Engine & Machinery Division post 94 billion won of profits thanks to an optimized operation of HHI’s Offshore Yard and material cost cut efforts for engine parts while Electro & Electric Systems, Construction Equipment and Robotics Division reported 107.6 billion won of profits with continued efforts to reduce material costs.
Hyundai Oilbank and other affiliates also played a role in reporting strong earnings with 350 billion won income even with a drop in refining margins and sales.
Meanwhile, HHI Group netted 39 ships worth $2.3 billion in the first four months this year, which is its largest ship orders for the comparable period in three years.
