Hyundai Heavy’s operating profit turns black for first time in 10 quarters

SEOUL — Hyundai Heavy Industries, the world’s largest shipbuilder, saw its operating profit turn into the black for the first time in 10 quarters during the first quarter, a regulatory filing showed Tuesday.

Consolidated operating profit was 325.2 billion won (283 million U.S. dollars) during the January-March period, the first turnaround in 10 quarters from a series of operating losses.

From the third quarter of 2013 to the fourth quarter of 2015, Hyundai Heavy’s operating losses surpassed 4 trillion won.

Revenue declined 16 percent from a year earlier to 10.27 trillion won in the first quarter, but the company posted a net profit at 244.5 billion won, succeeding in turning into the black.

The turn into the black was mainly attributable to favorable foreign-exchange rate moves, lower production costs and improved performance in non-shipbuilding businesses, indicating the still remaining uncertainties in the shipbuilding business.

The company reportedly erased massive losses in offshore plant orders, which Hyundai Heavy received at a low price, while eliminating low-priced shipbuilding orders. PNA/Xinhua/