사진 확대
The combined operating profit of the four major domestic defense companies in the second quarter hit an all-time high. However, Hanwha Aerospace accounted for much of the earnings growth, while weak new orders are seen as a potential headwind.
LIG Defense & Aerospace said in a regulatory filing on the 6th that its second-quarter sales reached 1.1101 trillion won and operating profit came to 105.7 billion won. That was up 17.4% and 29.5%, respectively, from a year earlier.
Revenue rose in the guided weapons segment, helped by expanded mass production of the Cheongung-II medium-range surface-to-air missile. Other businesses, including airborne electronics and electronic warfare (AEW) and intelligence, surveillance, and reconnaissance (ISR), also grew.
When combined with the previously announced results of Hanwha Aerospace, Hyundai Rotem, and Korea Aerospace Industries (KAI), the four companies posted second-quarter operating profit of 1.752 trillion won, up 36.3% from a year earlier. It was the fifth straight quarter in which operating profit exceeded 1 trillion won, and also a record high for any quarter.
A closer look, however, shows a mixed picture. Hanwha Aerospace reported sales of 9.2929 trillion won and operating profit of 1.3655 trillion won, up 47.3% and 58.5% from a year earlier, respectively. It was the first time its quarterly operating profit topped 1 trillion won.
Hyundai Rotem and KAI saw sales rise, but profitability weakened. Hyundai Rotem’s revenue increased 13.3% year on year to 1.6061 trillion won, while operating profit fell 9.7% to 232.4 billion won. KAI’s sales jumped 41% to 1.1679 trillion won, but operating profit plunged 43.1% to 48.4 billion won, far below market expectations.
Despite the record results, concerns remain because of sluggish new orders. A notable example is the 60 trillion won submarine project in Canada, which Hanwha Ocean pursued but lost to Thyssenkrupp Marine Systems (TKMS). Hanwha Aerospace also lost out on Romania’s 5.8 trillion won armored vehicle project to Rheinmetall AG, while KAI and Lockheed Martin withdrew from a U.S. Navy advanced trainer aircraft bid.
[Park Seung-ju]
This article has been translated by GripLabs Mingo AI.