DSME Not Selling Its Defense Ship Business

Image Courtesy: DSME

South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) said that it would not be selling off its defense ship business.

The move was considered in May 2016 as part of the company’s cost cutting measures aimed at restoring financial liquidity.

“In order to normalize the business, the company has considered the division of the special ship business by considering the requirements of the laws and regulations and the effect of liquidity improvement of the company. However, it has been determined that the economic feasibility is low and it is decided not to pursue the division of the special ship business division,” DSME said in a stock exchange filing.

DSME has achieved two profitable consecutive quarters in the first half of this year following its debt restructuring.

The sales for the first half of the year amounted to KRW 6.1 trillion (USD 5.4 billion), the group’s operating profit came at KRW 888 billion, while its net income reached KRW 1.448 trillion.

This is a major recovery when compared to corresponding last year’s figures when DSME posted an operating loss of KRW 352.6 billion.

The return to black is mostly due to self-rescue measures launched by the company, which included cutting of workforce and company-wide cost reduction efforts.

Furthermore, the shipbuilder expects the profitable streak to continue to improve as more than 20 “highly profitable” merchant ships are scheduled for the second half of the year.

World Maritime News Staff

 

 

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2018 >>
MTWTFSS
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 1 2 3 4

Shipping 360

This course is ideal for those who have recently joined the maritime sector and those who need to have a better understanding…

read more >

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Shippax Ferry Conference 2018

The two-day onboard ferry conference was first organized in 2003 and grows ever more popular with some 400 delegates from over 40 ferry…

read more >

8th Dredging & Land Reclamation World Summit 2018

The 8th Dredging and Land Reclamation Summit 2018 will gather the decision makers from Authorities and Operators responsible for ports…

read more >