Hanwha Aero, Benefiting from Defense Boom, Reports Q3 Operating Profit of 94.3 Billion KRW, Up 65% YoY

[Asia Economy Reporter Ki-min Lee] Hanwha Aerospace announced on the 11th that its consolidated operating profit for the third quarter of this year was tentatively estimated at 94.3 billion KRW, a 65.1% increase compared to the same period last year.

Sales reached 1.3771 trillion KRW, up 4.9% year-on-year. Net profit decreased by 34.9% to 56 billion KRW.

Hanwha Aerospace explained that although the global aviation industry was affected by the slump caused by the COVID-19 pandemic, strong performance in the defense sector significantly improved overall results.

In the defense sector, Hanwha Defense saw a substantial increase in sales due to increased domestic deliveries and exports of the Norwegian K9 self-propelled howitzer.

Hanwha Systems in the defense sector experienced a slight decrease in sales compared to last year, but operating profit improved significantly in the third quarter due to enhanced profitability in the military division, driving overall performance growth.

In the civilian sector, Hanwha Techwin maintained steady operating profits by solidly sustaining its closed-circuit television (CCTV) business in the U.S. market despite the impact of COVID-19.

Hanwha Power Systems also turned its operating profit positive compared to the previous year, continuing its profitability in the third quarter following the second quarter.

Unlike in the second quarter, Hanwha Precision Machinery escaped the impact of COVID-19, achieving significant increases in both sales and operating profit, turning profitable.

Hanwha Aerospace stated, "The global aviation industry is gradually improving after bottoming out in the second quarter," adding, "With stable sales in the defense sector and improved profitability in the civilian business, we expect steady growth next year as well."