11-05-2016

S. Korea: Shipbuilders suffer 6.5 tln won loss in 2015

shipbuilding

Shipbuilding-related companies in Korea suffered an operating loss of 6.5 trillion won ($5.53 billion) last year, up 60 percent from a year earlier, as major players struggled with mounting costs stemming from a delay in the construction of offshore facilities and a drop in new orders, industry data showed Tuesday.

According to the data compiled by Korea 20000 Corporate Research Institute, 77 out of the nation’s 100 largest shipbuilders logged an operating income last year, but its big three shipyards — Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. — racked up some 6.4 trillion won in operating losses.

The 100 companies’ combined sales edged down 1.5 percent on-year to 65.64 trillion won last year, about 90 percent, or 58.3 trillion won, of which came from the top 10 shipyards.

Among the surveyed firms, SPP Shipbuilding Co. posted the largest operating income of 57.4 billion won last year on the back of efforts to cut costs.

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 industry-wide slump and increased costs.

The big three shipyards racked up a combined net loss of 7.7 trillion won last year, marking the first time that all three of the nation’s largest industry players registered losses. (Yonhap)

Source: Yonhap

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