March 15, 2019 11:02
Daewoo Shipbuilding and Marine Engineering's operating profit surpassed W1 trillion last year, the highest in eight years (US$1=W1,135).
Freshly merged with Hyundai Heavy Industries, the shipbuilder said Thursday that sales totaled W9.64 trillion and operating profit W1.25 trillion in 2018. Sales were down 13 percent from a year earlier but operating profit rose 40 percent.
The sound earnings were due to the streamlining of orders focusing only on high-priced vessels and drastic restructuring. Daewoo sold off W620 billion worth of assets since 2015.
The results are good news for Hyundai Heavy, which is expected to invest up to W2.5 trillion into Deawoo, so the surplus earnings mean less money needs to be pumped in.
But Daewoo's unionized workers could use the strong earnings to justify their opposition to the merger.
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