The company posted 9.29 trillion won ($6.5 billion) in consolidated sales for the April-June period, up 47 percent from a year earlier. Operating profit rose 59 percent on-year to 1.37 trillion won.
By business, the land systems division reported 2.11 trillion won in sales and 533 billion won in operating profit, up 19 percent and 2 percent, respectively, from a year earlier.
Domestic sales were supported by increased production of major programs, including the Chunho wheeled anti-aircraft gun system and the Chungum anti-tank guided missile. Overseas deliveries to Poland, Egypt and the Middle East also proceeded as scheduled and were reflected in earnings.
The company’s order backlog stood at about 38.3 trillion won, supported by additional export orders including a K9 self-propelled howitzer deal with Finland worth about 940 billion won in April and an additional Chunmoo multiple rocket launcher supply contract with Estonia in May.
The aerospace division posted 760 billion won in sales and 37 billion won in operating profit. Sales rose 17 percent from a year earlier on increased military volume, while the division swung to an operating profit.
Hanwha Ocean reported 5.44 trillion won in sales and 736.1 billion won in operating profit, marking its strongest quarterly performance since being acquired by Hanwha Aerospace. Sales rose 65 percent on-year and operating profit increased 98 percent, helped by a higher share of revenue from profitable commercial ship projects, including liquefied natural gas carriers.
Hanwha Systems posted 1.12 trillion won in sales and a record operating profit of 103.7 billion won, supported by increased exports of key products such as multifunction radar systems.
“Hanwha Aerospace expects to maintain solid earnings in the second half, supported by mass production under Poland’s second K9 execution contract and deliveries of K9 howitzers to Egypt and Australia,” a company official said.
“Based on the aircraft engine development capabilities demonstrated through our recently unveiled unmanned aerial vehicle engine prototype, we will also actively participate in the government’s advanced aircraft engine development program to strengthen Korea’s aviation industry self-reliance and export competitiveness,” the official added.
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