Seoul: Hanwha Aerospace Co., South Korea's leading manufacturer of defense systems, has reported record-breaking earnings for the first quarter, largely attributed to the surge in defense system exports and the strategic consolidation of Hanwha Ocean Co. as a subsidiary.
According to Yonhap News Agency, Hanwha Aerospace's net profit for the January-March period reached 209.4 billion won (US$146.8 million) on a consolidated basis, a significant increase from approximately 3 billion won recorded a year earlier. This impressive financial performance was detailed in a recent regulatory filing by the company.
The company reported an operating profit of 560.8 billion won, a significant rise from 17.7 billion won in the same period last year. Sales also saw a dramatic increase, soaring 278.5 percent to 5.48 trillion won.
The ground defense division was a major contributor to this success, with sales amounting to 1.16 trillion won and an operating profit of 301.9 billion won, a notable shift from an operating loss in the previous year. The robust exports of K9 self-propelled howitzers and Chunmoo multiple rocket launchers to European markets played a key role in this profit turnaround.
Additionally, the aerospace division reported sales of 530.9 billion won, marking a 24 percent increase on-year, while operating profit surged 43 percent to 3.6 billion won.
Hanwha Ocean contributed significantly to the overall financial performance, posting sales of 3.14 trillion won and an operating profit of 258.6 billion won, driven by consistent deliveries of liquefied natural gas (LNG) carriers.
A company official noted that the integration of Hanwha Ocean enables Hanwha Aerospace to offer a comprehensive defense solution by leveraging the capabilities of its defense subsidiaries. The company aims to rapidly expand its global business footprint and is planning local investments in Europe to align with defense initiatives in the region.