Hanwha Aerospace's Q3 Operating Profit Falls 46% YoY to KRW 452 Billion

Ground Systems Results Decline Amid Delivery Schedule Changes
Poland K9 and Chunmoo Deliveries to Ramp Up...Recovery Expected in Q4
Hanwha Systems and Hanwha Ocean Improve Profitability

Hanwha Aerospace said on October 29 that it recorded consolidated revenue of KRW 6.0943 trillion and operating profit of KRW 452 billion in the third quarter of this year. Revenue fell 6% and operating profit fell 46% year on year.

The company's core Ground Systems business posted revenue of KRW 1.2455 trillion and operating profit of KRW 21.7 billion. The results were affected by the concentration in the fourth quarter of deliveries for major projects, including the second batch of K9 self-propelled howitzers for Poland, and the early delivery of some units in the second quarter.

Hanwha Aerospace expects its results to improve as deliveries of the second batches of K9 howitzers and Chunmoo multiple rocket launchers for Poland ramp up in the fourth quarter, while its K9 projects in Egypt and Australia progress.

The Aerospace business recorded revenue of KRW 659.9 billion and an operating loss of KRW 2.4 billion, reflecting losses from its risk and revenue sharing partnership (RSP) program as deliveries of GTF engines increased.

Results at major subsidiaries improved. Hanwha Systems recorded revenue of KRW 831.6 billion and operating profit of KRW 99.1 billion, helped by higher defense sales, including sales of multifunction radars (MFRs). These figures were up 30% and 60%, respectively, from a year earlier. Hanwha Ocean posted revenue of KRW 3.4139 trillion and operating profit of KRW 485.7 billion, up 13% and 68%, respectively, as the share of high-profit merchant ships increased.

Orders also continued. In September, Hanwha Aerospace signed a contract with Croatia to export 18 Chunmoo systems worth approximately KRW 640 billion. The Ground Systems business has an order backlog of approximately KRW 35 trillion.

A Hanwha Aerospace official said, "The third-quarter results were affected by adjustments to delivery schedules and one-off costs, but we expect performance to improve in earnest starting in the fourth quarter."

This content was produced with the assistance of AI translation services.