Hyundai Heavy Industries 3Q profit rises 83 pct
Hyundai Heavy Industries, the world's biggest shipbuilder, said third-quarter net profit rose 83 percent amid a stronger performance in non-shipbuilding businesses and lower costs for raw materials.
Hyundai Heavy Industries Co. earned 533.9 billion won ($448 million) in the three months ended Sept. 30, the company said in a regulatory filing Thursday. It posted net profit of 291.8 billion won a year earlier.
Quarterly sales rose 3 percent to 4.99 trillion won from 4.84 trillion won a year earlier.
Sales in its mainstay shipbuilding business declined 1.5 percent from the same period last year, but rose in three others, the company said in a separate statement. Revenues in the industrial plant and engineering division, for example, surged 77 percent, the company said.
Hyundai Heavy also benefited from lower steel prices, said company spokeswoman Kim Mi-ri. The return of 81.5 billion won in unused bad debt provisions helped boost the bottom line.
The result was an improvement over the second quarter, when net profit tumbled 40 percent amid foreign exchange-related losses and weak earnings at subsidiaries.
The Ulsan, South Korea-based company thrived in recent years as booming international trade and China's rapid economic development spurred demand for vessels.
The global economic slump, however, has hit new ship demand. Hyundai Heavy received no commercial ship orders beginning from the fourth quarter of 2008 before getting one in the third quarter of this year.
Hyundai Heavy, which usually releases breakdowns of its ship order backlog, did not divulge the information for the second and third quarters. Hyundai Heavy said in April it had an order backlog of 315 vessels valued at $35.7 billion as of March 31.
For the first nine months of 2009, the company said it received $403 million in accumulated ship orders, down from sharply from $13.69 billion the year before.
Hyundai Heavy, established in 1972, rose to become the world's largest shipbuilder after just 13 years. South Korean companies dominate the industry.
Besides shipbuilding, Hyundai Heavy also designs and builds offshore facilities such as oil production platforms and pipelines. It also manufactures power facilities, construction equipment and industrial robots, among other products.
Shares in Hyundai Heavy, which released earnings results after the stock market closed, fell 3.5 percent to finish at 164,000 won. The shares have declined 18 percent this year.
Hyundai Heavy Industries Co. earned 533.9 billion won ($448 million) in the three months ended Sept. 30, the company said in a regulatory filing Thursday. It posted net profit of 291.8 billion won a year earlier.
Quarterly sales rose 3 percent to 4.99 trillion won from 4.84 trillion won a year earlier.
Sales in its mainstay shipbuilding business declined 1.5 percent from the same period last year, but rose in three others, the company said in a separate statement. Revenues in the industrial plant and engineering division, for example, surged 77 percent, the company said.
Hyundai Heavy also benefited from lower steel prices, said company spokeswoman Kim Mi-ri. The return of 81.5 billion won in unused bad debt provisions helped boost the bottom line.
The result was an improvement over the second quarter, when net profit tumbled 40 percent amid foreign exchange-related losses and weak earnings at subsidiaries.
The Ulsan, South Korea-based company thrived in recent years as booming international trade and China's rapid economic development spurred demand for vessels.
The global economic slump, however, has hit new ship demand. Hyundai Heavy received no commercial ship orders beginning from the fourth quarter of 2008 before getting one in the third quarter of this year.
Hyundai Heavy, which usually releases breakdowns of its ship order backlog, did not divulge the information for the second and third quarters. Hyundai Heavy said in April it had an order backlog of 315 vessels valued at $35.7 billion as of March 31.
For the first nine months of 2009, the company said it received $403 million in accumulated ship orders, down from sharply from $13.69 billion the year before.
Hyundai Heavy, established in 1972, rose to become the world's largest shipbuilder after just 13 years. South Korean companies dominate the industry.
Besides shipbuilding, Hyundai Heavy also designs and builds offshore facilities such as oil production platforms and pipelines. It also manufactures power facilities, construction equipment and industrial robots, among other products.
Shares in Hyundai Heavy, which released earnings results after the stock market closed, fell 3.5 percent to finish at 164,000 won. The shares have declined 18 percent this year.