Red ink tide rises at Hyundai Heavy

OCTOBER 30, 3014 – The world’s largest shipbuilder, South Korea’s Hyundai Heavy Industries has reported a record quarterly operating loss of 1.93 trillion won ($1.83 billion). Though it expects to return to operating profit in the fourth quarter, it expects an operating loss for the full year of 3.2 trillion won — its worst ever.

The company has faced increased costs as a result of building vessel types that are new to it, including semisubmersibles and is also facing increased costs in order to meet construction delays in another new business area, building large power plants.

The company is in the midst of a restructuring that has already seen a shake up and thinning down of its executive ranks and that is likely to see the shedding of unprofitable business areas.