DSME Misses Its Q1 Forecast

South Korean shipbuilding major Daewoo Shipbuilding and Marine Engineering (DSME) managed to turnaround its net profit for the first quarter of 2016 recording KRW 31.4 billion (USD 2.7 million) against a loss of KRW 1.12 trillion in the previous quarter.

However, DSME’s operating profit remained in the red with an operating loss of KRW 26.3 billion (USD 23 million), missing analysts’ forecasts targeting profit of KRW 5.54 billion.

The results also failed to reach the company’s projection of reaching KRW 500 billion in operating profits for the first quarter of this year.

The expectation was based on the company’s major restructuring efforts including cost-cutting measures which are projected to bring about job cuts ranging from 12,000 to 30,000 by 2019. The cuts are expected to be implemented gradually across the board.

Nevertheless, the operating loss was substantially trimmed from KRW 1.06 trillion reported in the last quarter of 2015. DSME’s sales fell 21.6 percent on-year reaching KRW 3.53 trillion.

DSME reported a reduced full-year loss for 2015 worth KRW 3.31 trillion (USD 2.83 billion), substantially lower from KRW 5.13 trillion previously announced following an auditors’ review.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

Salvage & Wreck

Salvage and Wreck Removal Conference will focus on Casualty management case studies, Dealing with hazardous cargo and container ship fires…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >