A K-9 self-propelled gun on maneuver
[Yonhap photo].
[BizCheck=Chung, Goo-hak] Hanwha Aerospace's operating profit soared amid a boom in the defense industry.
Hanwha Aerospace announced on Tuesday that its operating profit for the second quarter on a consolidated basis was 358.8 billion won, up 356.5 percent from the same period last year.
The operating profit was 63.6% higher than the market forecast of 219.4 billion won compiled by Yonhap Infomax.
Revenue came in at 2.78 trillion won, up 46.0% from the same period last year. Net profit fell 46.6% to KRW159.9 billion.
“The operating profit in the second quarter was the highest ever for a quarter, exceeding market expectations,” said a Hanwha Aerospace representative, ”and synergies have been realized within a year of the integrated entity.”
The increase in sales and operating profit in the second quarter was largely driven by exports to Poland.
Hanwha Aerospace, whose main products include the K-9 self-propelled artillery and the multi-stage rocket Taejon, signed a framework agreement with the Polish Armed Forces Administration in July 2022 to export 672 K-9 Muns and 288 Taejon.
Subsequently, in August and December of that year and in April of this year, the company signed implementation contracts to fulfill the basic contract.
In the second quarter, 6 K-9 Muns and 18 Cheonmoo were delivered to Poland, which are reflected in sales, leading to the improvement in performance. A total of 30 units were delivered, but it is estimated that 18 units were recognized as sales because they are recognized as sales after they are combined and tested after delivery.
Hanwha Aerospace's Daryunjang rocket Chunmu displayed at the entrance of the MSPO exhibition hall= Hanwha Aerospace displayed its Daryunjang rocket Chunmu at the entrance of the exhibition hall at the International Defense Industry Exhibition (MSPO) in Kielce, Poland, last September. Pictured here is the Korean Aerospace Daryunjang rocket Tianmu (Polish name Homar-K) on display at MSPO. [Courtesy of Hanwha Aerospace].
The company's aviation business also reportedly increased sales and operating profit due to increased demand for aircraft maintenance due to the COVID-19 pandemic, which boosted sales of aviation engine parts.
“The operating profit margin is nearly 10 times the growth rate of sales,” said a financial insider, ”which shows how high the unit cost of Hanwha Aerospace's exports is in the international defense market.”
With a remaining K-9 contract with Poland (worth 284 contracts) and additional orders in other regions, Hanwha Aerospace has a bright outlook for the coming years.
On the 10th, Hanwha Aerospace signed a contract worth 1.3 trillion won with the Romanian Ministry of Defense for 54 K-9s, 36 K-10 ammunition-carrying armored vehicles, and ammunition.
By Chung, Goo-hak ghchung@naver.com
저작권자 ⓒ 비즈체크, 무단 전재 및 재배포 금지