Samsung Heavy's Profit Down 82%
By Aiswarya Lakshmi
Tuesday, November 7, 2017
South Korean shipbuilder Samsung Heavy Industries (SHI) said that net profit for the third quarter of 2017 was down 81.8% year on year to KRW23.4 billion (USD20.44 million), mainly due to deliveries of low-priced vessels and a decrease in orders.
According to Yonhap, the operating income in the July-September period reached 23.6 billion won, sharply down from an operating income of 84.1 billion won a year earlier.
The shipyard's sales dropped 37 percent on-year to 1.75 trillion won over the cited period. Last year, the shipyard suffered a loss of 139 billion won, compared with a loss of 1.21 trillion won from a year earlier.
The shipbuilding industry, once regarded as the backbone of the country's economic growth and job creation, has been reeling from mounting losses caused by an industrywide slump and increased costs.
The shipbuilders have drawn up sweeping self-rescue programs worth some 11 trillion won in a desperate bid to overcome a protracted slump and mounting losses.