HHI’s 2014 Results Fall Short
Posted by Eric Haun
Friday, March 27, 2015
The world’s biggest shipbuilder, Hyundai Heavy Industries (HHI), held its 41st Annual General Meeting of Shareholders in Ulsan, South Korea.
The meeting agenda included approval for the financial statements, and the ceiling for the Board of Directors’ remuneration as well as appointment of directors and a new audit committee member.
“In 2014, our yearly results fell short of expectations due to mounting internal and external difficulties,” said Choi Kil-seon, chairman and CEO of HHI at the meeting. “This year will also likely present us with continued uncertainties including the global economic downturn, the collapse in oil prices and intensifying competition.”
HHI shared its business performance for 2014, reporting revenues for the full year of $21.17 billion. Its operating loss and net loss stood at $1.73 billion and $1.58 billion respectively, with total current assets of $28.88 billion. HHI said it chose not to pay dividends due to the loss incurred last year. The company also announced its 2015 annual sales target of $21.96 billion and new orders target of $22.95 billion.
The Board of Directors appointed Ka Sam-hyun, COO of HHI Group Ship Sales Division, as a new inside director and appointed Yoo Kook-hyun, an attorney at a Korean legal firm Kim & Chang, as a new external director and a member of the audit committee.