Won Depreciation To Raise Daewoo's Operating Profit by 43 Percent

The head of South Korea's Daewoo Shipbuilding said on Friday the won's depreciation would raise the company's operating profit by about 43 percent from its earlier target.

"If the (dollar/won) exchange rate stabilizes above 1,300, our operating profit will rise to about 300 billion won ($222.7 million) this year against an earlier target of 210.7 billion won," a high-ranking Daewoo official said.

Daewoo Shipbuilding & Marine Engineering Co., which was spun off from Daewoo Heavy Industries last October along with another unit, earlier made this year's forecast on the assumption the exchange rate would be around 1,200.

The official was quick to add that graduation from creditors' workout program would be possible by end-June, six months ahead of the year-end target.

He said negotiations to attract capital from Newcastle, a company formed by Australia-based investors, were in progress and due diligence would be possible in the second half of this year.