Hyundai Heavy Q4 net jumps on orders for high-priced ships

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SEOUL, Jan. 29 (Yonhap) -- Hyundai Heavy Industries Co., the world's biggest
shipbuilder, said Thursday that its fourth-quarter earnings soared 66.5 percent
as it received more orders for high-priced ships.
Net profit reached 854 billion won (US$619 million) in the October-December
period, compared with 513 billion won a year earlier, the company said in a
regulatory filing.
Sales rose 42 percent to 6.05 trillion won and operating income climbed 21
percent to 675 billion won.
For the full year of 2008, the company's net profit increased 29 percent to a
record 2.24 trillion won. Operating income also jumped 26 percent to a record 2.2
trillion won and sales soared 28.5 percent to 19.96 trillion won, the largest in
its history.
Shares of Hyundai Heavy closed down 1.52 percent at 194,500 won on the Seoul bourse.
South Korea, home to seven of the world's top 10 shipyards, clinched record-high
orders in the past few years because of strong demand for crude carriers and
offshore exploration equipment amid lofty oil prices.
But with the worsening global economic crisis, new shipbuilding orders worldwide
fell 52 percent last year. Orders won by South Korean shipbuilders also fell 47
percent last year.
Hyundai Heavy said earlier this month that it failed to meet last year's order
target due to the global economic slump.
The shipbuilder received orders valued at a record $28.2 billion last year, up
12.77 percent from $25 billion a year earlier, but fell short of its yearly
target of $29.4 billion, according to Hyundai Heavy.
Hyundai Heavy clinched orders to build 110 vessels last year, compared with 148
ships secured a year earlier. The company had no new orders for three months
since October.
The company aims at winning orders valued at $21.1 billion and sales worth 22.88
trillion won for this year.
sam@yna.co.kr
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