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

  • Oman sees road safety gain
    May 20, 2016
    Oman’s roads have shown a gain in safety during the first four months of 2016. Crashes dropped 32% for the first four months of this year, compared with the same period during 2015. However road deaths during the first four months of 2016 increased by 1.4% to 210. In all there were 1,413 crashes in the first four months of 2016, while injuries were reduced by 22.8% to 903.
    Read More
  • Advanced earthmovers now available
    May 10, 2018
    The excavator and wheeled loader segments represent massive sales volumes for manufacturers, so new model development is prioritised - Mike Woof writes. The crawler excavator segment accounts for a substantial portion of total sales of construction machines. With this in mind, it is no surprise that this is a market segment for which manufacturers prioritise a significant proportion of their research and development budgets. Wheeled loaders, while not selling in quite such large numbers as crawler excava
    Read More
  • Canada: work officially starts on Montreal’s Champlain Bridge
    June 25, 2015
    Canada’s infrastructure minister, Denis Label, officially broke ground for Montreal’s replacement Champlain Bridge, saying the project will likely cost US$3.42 billion. The 3.4km Champlain Bridge Corridor Project, including spans and highway expansions, is expected to be completed by 2019. SNC-Lavalin, the 50% stakeholder in the winning consortium Signature on the Saint-Lawrence, recently announced it had finalised the deal with new Champlain Bridge owner Infrastructure Canada. Signature on the Saint-
    Read More
  • Manitowoc’s new structure for African sales
    October 4, 2018
    Manitowoc is setting up a new structure for its tower crane business in Africa. The firm’s self-erecting tower cranes (GMA cranes) and top-slewing cranes (GME cranes) are now being operated separately when it comes to production and product management. The company claims that this reorganisation allows for increased customer focus, market intelligence, operations efficiency and crane production. Being run independently in terms of production and product management, the new structure has the sole objectiv
    Read More

Highlighted Content