Declining sales for the major shipbuilder
The first quarter net profit fell 13.7% compared to its previous year for Daewoo Shipbuilding & Marine Engineering Co., a major South Korean shipbuilder due to a decline in sales.
Their balance sheet for Q1 this year states that net profit reached 195 billion won for the period January-March in contrast to 226 billion won the previous year.
Operating profit declined 33% to 199 billion won as well as a decline in sales of 8% to 2.07 trillion won.
Despite a decline in profits, the company said it had a solid first-quarter performance amid difficult market conditions in the shipbuilding sector.
"Last year, we had some one-off gains, so compared to the previous year, our first quarter earnings might not be good," the company's spokesperson said. "But we have been staying in the black for fifth consecutive quarters."
Daewoo Shipbuilding said increased raw-material costs are still a challenge, but its recent deliveries of drillships, and order backlog for LNG vessels, will boost the company's earnings.