HJ Heavy Industries has reported that its cumulative operating profit for the third quarter of this year has increased more than eightfold compared to the same period last year, thanks to improvements in the shipbuilding sector.
On November 12, HJ Heavy Industries announced that its consolidated cumulative sales reached 2 trillion 44 billion won and operating profit was 155.4 billion won. This marks a 46.3% increase in sales compared to the previous year, while operating profit surged from 16.6 billion won to over eight times that amount. Net profit also rose significantly from 2.9 billion won to 130.6 billion won.
The improvement in performance was led by the shipbuilding sector. The commencement of construction for eco-friendly, high-value container ships has enhanced both sales and profitability, while the special ship business, including maintenance, repair, and overhaul (MRO) for the U.S. Navy, also contributed to the results.
In the third quarter, the shipbuilding sector's cumulative sales reached 1 trillion 129.7 billion won, an 88.1% increase from 600.5 billion won in the same period last year. Operating profit for this sector was 149.7 billion won, accounting for the majority of the overall operating profit. The company attributed its success to increased dock utilization and improved production efficiency, despite challenges such as currency fluctuations and reduced working days due to summer vacations and the Chuseok holiday.
The construction sector also maintained a profitable trend, with cumulative sales of 874.2 billion won and operating profit of 5.6 billion won in the third quarter. HJ Heavy Industries plans to continue selective bidding focused on profitability in public works, civil engineering, and urban redevelopment projects, while enhancing cost management and operational efficiency.
An HJ Heavy Industries representative stated, "The expansion of high-value ship sales in the shipbuilding sector and stable orders and operations in the construction sector have supported our strong performance. We will continue to strengthen the competitiveness of both major business divisions and focus on profitability to sustain growth while enhancing corporate and shareholder value."
* This article has been translated by AI.
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