Hanwha Aerospace CI./Hanwha Aerospace
Hanwha Aerospace (012450.KS) reported preliminary first-quarter operating profit of 638.9 billion won ($470 million), up 21% from a year earlier, the company said Wednesday.
Revenue rose 5% year-on-year to 5.75 trillion won ($4.23 billion).
By business segment, the land defense division posted revenue of 1.22 trillion won, a 5% increase from a year earlier, while operating profit fell 31% to 208.7 billion won.
However, the order backlog reached a record high of 39.7 trillion won, reflecting a 1.3 trillion won contract to export the Chunmoo multiple-launch guided missile system to Norway.
The aerospace division recorded revenue of 661.2 billion won and operating profit of 22.6 billion won, up 25% and 533% year-on-year, respectively. An increase in military orders and a higher revenue share from businesses with solid profitability drove the earnings improvement.
Hanwha Ocean (042660.KS) reported revenue of 3.21 trillion won, up 2% from a year earlier, while operating profit surged 71% year-on-year to 441.1 billion won. A higher share of high-value commercial vessel projects such as liquefied natural gas (LNG) carriers, a favorable exchange rate, material cost reductions and productivity improvements contributed to the profitability gains.
“The first quarter saw solid growth driven by strong performances in the aerospace division and Hanwha Ocean,” a Hanwha Aerospace official said. “Building on a record-high order backlog, we will maximize shareholder value through continued order wins.”