Hyundai Heavy reports fifth profitable quarter in a row

APRIL 27, 2016 — Hyundai Heavy Industries (HHI) today reported its results for the first quarter, ended March 31, 2017

Net profit was recorded at 462.3 billion ($409.6 million) making the period the group's fifth consecutive profitable quarter.

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 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 where Hyundai Heavy has a competitive edge on, stabilization of manufacturing processes, and cost reduction efforts.

Offshore & Engineering Division and Engine & Machinery Division posted 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.

An HHI official said, "We have been active in improving profitability and fiscal health with preemptive and comprehensive restructuring measures since 2014. With five consecutive quarterly profits, we will redouble our efforts to continue to report stable profits with technology and quality-oriented management."

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