"Growth in Civilian Business in H1 and Defense Sector in H2
Steady Performance Expected This Year Following Last Year"
[Asia Economy Reporter Moon Chaeseok] Hanwha Aerospace announced on the 29th that its consolidated operating profit for the first quarter increased by 0.8% year-on-year to 66.4 billion KRW. Sales during the same period rose 13.7% to 1.3781 trillion KRW.
In the aerospace defense sector, operating profit slightly increased compared to the previous year due to strong performance in the civilian segment. Hanwha Defense saw a slight decrease in operating profit year-on-year as overseas sales declined despite an increase in domestic sales. Hanwha Systems experienced improved performance in the defense sector, but operating profit decreased compared to the previous year due to a decline in the information and communication technology (ICT) segment and increased investment in new businesses.
In the civilian sector, Hanwha Precision Machinery's sales increased year-on-year, supported by domestic sales growth despite a decrease in sales in China. Power Systems minimized its deficit through increased sales. Notably, Hanwha Techwin recorded high growth rates in the North American business-to-business (B2B) market for the second consecutive year, resulting in significant increases in sales and operating profit compared to the previous year. Since its launch, Hanwha Techwin has achieved the highest quarterly sales and profits in its history, and the civilian sector has achieved the best first-quarter sales and profits since 2015 for the second consecutive year.
A Hanwha Aerospace official explained, "In the first half of the year, profitability is expected to increase centered on Techwin in the civilian business, and in the second half, sales and profit growth are expected mainly in the defense sector, so solid performance is anticipated following last year."
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