SEOUL, April 28 (Korea Bizwire) – Samsung Heavy Industries Co., a major shipyard here, said Friday that its first-quarter earnings more than tripled from a year earlier on cost-saving measures.
Net profit reached 58.7 billion won (US$51.6 million) in the January-March period, compared to a profit of 15.9 billion won a year earlier, the company said in a regulatory filing.
Operating income reached 27.5 billion won in the first quarter, sharply up from an operating income of 6.1 billion won a year earlier.
Its sales, however, fell 3.7 percent to 2.44 trillion won over the cited period.
Last year, the shipyard suffered a loss of 139 billion won, compared to a loss of 1.21 trillion won a year earlier.
The shipbuilding industry, once regarded as the backbone of the country’s economic growth and job creation, has been reeling from mounting losses caused by an industry-wide slump and increased costs.
The country’s top three shipyards suffered a combined operating loss of 8.5 trillion won in 2015 due largely to increased costs stemming from a delay in the construction of offshore facilities and the industry-wide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion won loss.
The shipbuilders have drawn up sweeping self-rescue programs worth some 11 trillion won in a desperate bid to overcome a protracted slump and mounting losses.