Hyundai Heavy swings to Q1 net loss on FX losses and dwindling orders

Hyundai Heavy
This file photo shows goliath cranes of Hyundai Heavy Industries Co. at its shipyard in Ulsan, an industrial city located 414 kilometers southeast of Seoul.

Hyundai Heavy Industries Co., the world’s biggest shipbuilder by sales, said Thursday that it shifted to a net loss in the first quarter from a year earlier due to foreign exchange losses and dwindling orders.

Hyundai Heavy said in a regulatory filing that it posted a net loss of 132.1 billion won (US$123 million) in the three months ending March 31, compared with a net profit of 114.1 billion won a year earlier.

The company said a strong won and fixed costs amid decreased orders cut into its quarterly bottom line.

The dollar traded at an average of 1,072.3 won in the first quarter from 1,154.3 won a year earlier. A strong won drives down the value of dollar-denominated overseas earnings when converted into the local currency.

The shipbuilder said its operating loss reached 123.8 billion won in the first quarter, shifting from a net profit of 141.5 billion won a year earlier.

Sales fell 29.4 percent to 3.04 trillion won over the cited period.

Separately, Hyundai Heavy said it has received a 436.8 billion won order to build four container carriers for Zodiac Group Monaco by July 2020.

On Thursday, shares in Hyundai Heavy fell 0.42 percent to 119,500 won, outperforming the broader KOSPI’s 0.73 percent loss.

The Original Posted By entropy@yna.co.kr