Seoul: Hanwha Systems Co., a defense solutions unit under South Korea's Hanwha Group, announced a significant increase in its second-quarter net profit, reporting a 73.9 percent rise year-on-year. The impressive growth is attributed to strong demand for its military radar and communications products.
According to Yonhap News Agency, Hanwha Systems' net profit for the April-June period reached 47 billion won (US$33.8 million). Despite this surge in net profit, the company's operating income experienced a decline, falling 60.4 percent to 33.5 billion won from the previous year. Sales, however, saw an 11.8 percent increase, totaling 768.2 billion won.
The boost in sales was largely driven by the continued production of its tactical information and communication network (TICN) and the next-generation tactical multiband multimode radio (TMMR), both essential systems for the South Korean military. Additionally, international sales of the multi-function radar (MFR) used in the Cheongung-II missile system contributed to the export growth, with significant orders from the United Arab Emirates and Saudi Arabia.
The decline in operating profit was primarily due to the costs associated with Hanwha Systems' investment in Hanwha Philly Shipyard, a U.S. shipbuilder acquired by Hanwha Group in December. The company, in collaboration with Hanwha Ocean Co., is working to rejuvenate the shipyard by implementing smart technologies, enhancing workforce skills, and transferring key technologies.