Huyundai Heavy Industries Q1 profit sinks 61.7 percent

Industry

Huyundai Heavy Industries Q1 profit sinks 61.7 percent

Hyundai Heavy Industries’ operating profit in the first quarter plummeted nearly 62 percent on the back of stagnation in the shipbuilding industry.

The company said a drop in shipbuilding as well as less sales in its construction equipment caused by the stagnant economy were the primary cause for the sharp drop of its operating profit.

HHI yesterday announced that operating profit in the first three months plunged 61.7 percent from a year earlier to 377.7 billion won ($344 million). The shipbuilders’ net profit shrunk nearly 40 percent to 319.7 billion won while revenue was 5.7 percent less at 13.1 trillion won.

However, the operating profit is a turnaround from the 500 billion won loss posted in the last three months of 2012, thanks to improvement in its refinery business.