Orbitec Posts 11.7 Billion KRW in 2Q Sales... "Expecting Performance Improvement in Second Half"

[Asia Economy Reporter Hyungsoo Park] Orbitech announced that its consolidated sales for the second quarter amounted to 11.7 billion KRW, a 58.8% decrease compared to the same period last year. Operating loss was 6.8 billion KRW, and net loss for the period was 7.4 billion KRW, turning to a deficit.

Orbitech mainly operates in the maintenance and inspection of nuclear-related facilities, radioactive waste management and disposal, and the manufacturing of precision aircraft components.

A company official stated, "The ISI business division, which accounted for 23% of last year's sales, showed poor performance in the first half of this year," adding, "The evaluation loss of approximately 5 billion KRW on investment assets held by a subsidiary engaged in new technology business finance was reflected, significantly impacting profitability in the first half."

Sales in the aviation business division are recovering. The aviation business headquarters recorded sales of 5.2 billion KRW in the second quarter alone, a 256.9% increase compared to the same period last year. The aviation business division, which began improving its performance from the first quarter of this year, achieved cumulative sales of over 10 billion KRW and operating profit exceeding 1 billion KRW in the first half of this year.

Orbitech manufactures structures used in Boeing's main aircraft models, a global finished aircraft manufacturer. It produces about 1,000 various parts used in aircraft, including bulkheads, rear spars, and jack screws.

A company official said, "With the resumption of deliveries of the Boeing 787, which had been temporarily suspended, demand for parts is expected to increase further," adding, "Since some investment assets of Orbit Partners are expected to realize profits in the second half of this year, performance is likely to improve."

He continued, "Regarding the nuclear and ISI business divisions, large-scale service bids are scheduled for the second half," and added, "We are continuously seeking to expand participation markets internally, so long-term growth in the nuclear business sector can be expected."