Hanwha Systems Reports 218.1% Increase in Q1 Operating Profit

Sales increased by 23.9% to 544.4 billion KRW

Hanwha Systems announced on the 26th that it achieved consolidated sales of 544.4 billion KRW, operating profit of 39.3 billion KRW, and net profit of 50.3 billion KRW in the first quarter. Compared to the same period last year, sales increased by 23.9% and operating profit rose by 218.1%. Net profit decreased by 2.8%.

Hanwha Systems showcased the export model of the Cheongung-II multifunction radar (center in the photo) at the '2024 WDS' held in Saudi Arabia /
[Photo by Hanwha Systems]

In the defense sector, several export and mass production projects drove performance, including Poland's K2 fire control system, the United Arab Emirates (UAE) Cheongung-II Multifunction Radar (MFR), and the fourth mass production of the Tactical Information Communication Network (TICN). The Information and Communication Technology (ICT) sector solidified its performance through domestic and international projects such as the integration of Hanwha Aerospace systems and the establishment of a next-generation Enterprise Resource Planning (ERP) system.

Regarding net profit, it decreased due to the elimination of one-time derivative gains recorded in the first quarter of last year before the completion of the acquisition of Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering).

Hanwha Systems expects double-digit sales growth compared to last year. The company stated, "In the defense sector, exports of the Saudi Arabian Cheongung-II MFR and the initial mass production of the AESA radar, a core component of the Korean Fighter (KF-21), are underway. In the ICT sector, expansion of external projects based on financial solutions is expected to drive this year's performance."