Hyundai sees strong profits for 2016 so far

Hyundai Heavy Industries (HHI) has revealed a strong financial performance during the first half of 2016. Profits for the engineering firm reached US$792.754 million (900 billion South Korean Won) for the first half of 2016. The second quarter for the April-June period was healthy, with HHI achieving $8.68142 billion (9.8627 trillion Won) in sales, while operating income stood at $490.504 million (557.2 billion Won). Meanwhile accumulated sales hit $$17.7306 billion (20.1355 trillion Won) and operating p
July 27, 2016 Read time: 2 mins
236 Hyundai Heavy Industries (HHI) has revealed a strong financial performance during the first half of 2016. Profits for the engineering firm reached US$792.754 million (900 billion South Korean Won) for the first half of 2016.

The second quarter for the April-June period was healthy, with HHI achieving $8.68142 billion (9.8627 trillion Won) in sales, while operating income stood at $490.504 million (557.2 billion Won). Meanwhile accumulated sales hit $$17.7306 billion (20.1355 trillion Won) and operating profits for the first half of this year reached $777.01 million (882.4 billion Won).

HHI says that its strong operating profits in this period follows from restructuring measures put in place since 2014 as well as strong from its refining subsidiary.

An HHI officer said, “Stabilisation of manufacturing processes for offshore plant business, change orders received from its offshore plant business clients, and increased building volume of ships that HHI won at profitable prices outweighed the 260 billion Won ($228.961 million) one-off cost for the voluntary retirement program. Continued efforts to reduce material costs for non-shipbuilding businesses including Engine & Machinery, Electro Electric Systems and Construction Equipment also played a role for the profits.”

Meanwhile, a representative of global accounting firm PwC, announced on July 26 that HHI’s £3.08216 billion (3.5 trillion Won) worth of management improvement plan is good enough for it to make operating profits and secure liquidity even in the worst case scenario.

Today, HHI also held a board of directors meeting and decided to sell Hyundai Finance Corporation and Hyundai Venture Investment Corporation as a part of the proposed management improvement plan. With the decision to dispose of all of its financial arms including Hyundai Futures, Hi Asset Management and Hi Investment & Securities, HHI will accelerate its business reorganisation efforts with much more focus on its core businesses.
Finance & Funding

For more information on companies in this article

Related Content

  • Major road projects for Philippines planned
    September 11, 2015
    A series of major highway infrastructure projects are planned for the Philippines. Plans are in hand for the Cavite-Laguna Expressway (CALAX) project, with MPCALA Holdings calling on the authorities to give final approval so that construction can commence before 2017. MPCALA Holdings is a subsidiary of conglomerate Metro Pacific Investments (MPIC) and won the 35-year contract to build, operate and maintain the CALAX in June 2015. The CALAX project is worth US$754.6 million. At present, the company is lookin
    Read More
  • Equipment firm Wacker Neuson posts bullish results
    March 31, 2014
    Munich-based equipment manufacturer Wacker Neuson reports an increase in Group revenue and profitability in 2013. This has been achieved in spite of tough trading conditions and having met its targets for 2013, the firm aims to remain on track in 2014. The company achieved €1.16 billion in revenue and says it managed to boost market penetration of light and compact equipment in its core European and US markets. It also developed specific new markets. Group revenue rose 6% to €1.16 billion, compared with nea
    Read More
  • Serbia’s pan-European Corridor X is in the slow lane
    October 23, 2017
    It’s been slow progress on Serbia’s Corridor X project. Gordon Feller reports. Back in the early 2000’s, the European Union undertook an ambitious programme to link the main cities of its south-eastern region. This involved connecting five key seaports – the Greek cities of Patras, Igoumenitsa, Piraeus and Thessaloniki as well as Romania’s Black Sea city of Constanta. Initially the plan involved two motorways across Greece. The first was a new 780km route including a branch to Ormenio on Greece’s north-eas
    Read More
  • Indonesia: Waskita Raya to develop Bali toll road
    April 28, 2015
    Indonesian state construction firm Waskita Karya said it will be developing the US$2.7 billion Bali toll road project. But the Ministry of Public Works and Housing has yet to approve the 157km project which is in the pre-feasibility study stage. Waskita Karya’s finance director Tunggul Rajagukguk also said the company might seek nearly $1.8 billion of financing this year for not just road projects but also power transmission work. Financing could be around half through bond issuance and the other half v
    Read More

Highlighted Content