Daewoo Shipping and Marine Engineering Posts Q3 Loss

The South Korean shipbuilding major Daewoo Shipbuilding & Marine Engineering (DSME) has posted a net loss in the third quarter from a year earlier due to one-off losses.

According to a stock exchange announcement by the world’s second-largest shipbuilder by orders, the net loss reached 323.9 billion won (US$285.1 million) in the three months ending Sept. 30 from a net profit of 74.9 billion won during the same period last year.

DSME's operating profit in the third quarter fell 9.6 percent on-year to 177.0 billion won (US$156.29 million).

Revenue declined 9.2 percent to 2.20 trillion won and net loss came in at 323.9 billion won turning to red from a year ago.

A Yonhap report said that DSME blamed the net loss on its sale of Daewoo Mangalia Heavy Industries.

In July, Daewoo Shipbuilding sold Daewoo Mangalia Heavy Industries in Romania as part of its efforts to liquidate loss-making units, incurring losses worth about 460 billion won.