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

  • The global road safety crisis needs to be addressed
    October 12, 2017
    The global road casualty rate continues to climb as motorisation levels grow and is particularly acute in the developing world. Developing countries suffer from a particularly high rate of crashes and around 90% of road fatalities. The impact, both in economic and human terms, is unsustainable. These countries cannot afford the loss to their economies of the young and economically active.
    Read More
  • The global road safety crisis needs to be addressed
    October 12, 2017
    The global road casualty rate continues to climb as motorisation levels grow and is particularly acute in the developing world. Developing countries suffer from a particularly high rate of crashes and around 90% of road fatalities. The impact, both in economic and human terms, is unsustainable. These countries cannot afford the loss to their economies of the young and economically active.
    Read More
  • Weighty matters for developing countries
    November 6, 2012
    One leading Weigh in Motion technology manufacturer is helping governments in developing countries reduce excessive road damage, while several others have seen their latest WIM systems recently used on the highways of Eastern Europe. Guy Woodford reports Recent Central Weighing WIM installations in Bangladesh are helping its national government reduce the financial burden of excessive road damage, while also protecting many bridges that are vital to transport and trade. The need for such installations was e
    Read More
  • T.Y Lin International to start project management of fourth canal bridge
    June 2, 2016
    The president of Panama, Juan Carlos Varela, has given the green light to T.Y Lin International to start project managing construction of a fourth bridge over the Panama Canal. The US-based infrastructure engineering company won an international tender for the work likely to cost around US$17 million, according to local media. Pre-qualification has started for companies interested in participating on the billion-dollar project. The new bridge is one of three infrastructure projects within a five-ye
    Read More

Highlighted Content