A view of Hanwha Ocean's Geoje Shipyard on March 12.YONHAP
Korea's major conglomerates posted higher second-quarter profits as a weak won boosted export competitiveness and chip demand stayed strong.
Hanwha Ocean, the shipbuilding arm of Korea's Hanwha Group, said Monday its second-quarter net profit more than quadrupled from a year earlier, driven by higher-margin ships and a weaker won.
Net profit for the three months that ended in June surged to 692.6 billion won ($471.9 million) from 148.5 billion won a year earlier, the company said in a press release. Its operating profit rose 98 percent to 736.1 billion won in the second quarter, while sales rose 65 percent to 5.44 trillion won.
"Orders for high-value ships began to be reflected in the bottom line in the second quarter. Higher vessel prices and the won's weakness against the dollar also helped boost earnings," a company spokesperson said.
Mentioning its recent failure to win Canada's multibillion-dollar submarine procurement project, the company said costs associated with the bid were fully reflected in its first-half results.
Earlier this month, Canadian Prime Minister Mark Carney announced that Germany's TKMS had been selected for the procurement program, valued at up to 60 trillion won, beating a Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries.
"The company views the unsuccessful bid not as a setback, but as a significant step toward expanding its presence in the global defense market," a company representative said during a conference call on its quarterly earnings.
Hanwha Ocean is in discussions over a range of business opportunities in the Middle East, Africa, Southeast Asia, Latin America and Europe, drawing on the networks, experience and capabilities it developed during the bidding process.
Celltrion Group Chairman Seo Jung-jin speaks during a shareholders' meeting in Incheon on March 24.YONHAP
Celltrion, a major biopharmaceutical company, also saw its net profit skyrocket nearly sixfold in the second quarter from a year earlier, driven by strong sales of its expanding biosimilar portfolio.
Net profit for the three months that ended in June soared to 371.3 billion won from 63.3 billion won in the same period last year, the company said in a press release.
The company attributed the strong performance to increased sales of newer biosimilars, including Remsima SC, Steqeyma, Yuflyma and Vegzelma. An improved product mix and greater cost efficiency in the production process also helped boost profitability, the company said.
Operating profit jumped 86.3 percent to 451.8 billion won in the second quarter from 242.5 billion won a year earlier. Sales also rose 45 percent to 1.39 trillion won from 961.5 billion won over the same period.
Companies across other industries also reported strong second-quarter earnings, reflecting favorable market conditions.
LG Innotek, an electronic component manufacturing unit of LG Group, said on the same day its second-quarter net profit soared more than 2,000 percent from a year earlier, driven by strong sales of camera modules and semiconductor substrates.
Net profit for the April-June period rose to 245.8 billion won, up 2,057 percent from the same period a year earlier, the company said. Revenue increased 40.5 percent on year to 5.53 trillion won, marking the company's highest-ever second-quarter sales.
Doosan Enerbility reported its second-quarter net profit of 226.4 billion won, up 14.4 percent from a year earlier, beating market expectations.
The new energy solutions provider under the Doosan Group said in a regulatory filing that it posted 314.3 billion won in operating profit for the quarter, compared with 271.1 billion won a year ago. Sales also rose 3.4 percent to 4.72 trillion won.
