SEOUL, Oct. 31 (Yonhap) — Hanwha Aerospace Co., a subsidiary of South Korea’s Hanwha Group, announced on Tuesday that it had incurred a net loss of 3.6 billion won (US$2.7 million) in the third quarter of the year, a stark contrast to the 87.3 billion won profit it made in the same period a year ago.
The loss was attributed to a one-time loss provision of 156.1 billion won related to the company’s involvement in an international aerospace engine project.
Despite the net loss, Hanwha Aerospace saw strong performances in sales and operating profit, with sales increasing by 31.1 percent year-on-year to 1.98 trillion won and operating profit rising 64.5 percent to 104.3 billion won.
The operating profit was 14.5 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company reported that its weapons exports contributed to the growth of both sales and operating profit, with quarterly exports totaling 197.5 billion won, a 177 percent increase from the previous three-month period. The aerospace division also saw a 19 percent year-on-year growth in sales, amounting to 390.2 billion.
Hanwha Aerospace’s shares fell 0.69 percent to 101,000 won on Tuesday, although this was better than the broader KOSPI’s 1.41 percent loss.
Hanwha at Paris Airshow. This photo, provided by Hanwha Systems Co., shows the South Korean arms maker and its sister company Hanwha Aerospace’s joint booth at the Paris Airshow, taking place from June 19-25, 2023, at Le Bourget Airport in the suburbs of Paris. (PHOTO NOT FOR SALE) (Yonhap)