Hanwha Aero Q1 Operating Profit Drops 83%... "Impact of Poland Schedule"

Sales of 1.8483 trillion KRW... 9% decrease YoY
Order backlog of about 30.3 trillion KRW at the end of Q1
"Defense sector annual sales and operating profit expected to increase"

Hanwha Aerospace announced on the 30th that it recorded consolidated sales of 1.8483 trillion KRW and an operating profit of 37.4 billion KRW in the first quarter of this year. Due to the impact of the export schedule to Poland, sales decreased by 9% compared to the previous year, and operating profit decreased by 83%.

By business segment, the defense sector recorded sales of 656.6 billion KRW and an operating profit of 14.2 billion KRW due to a decrease in shipments in the first quarter following the export plan to Poland. These figures represent decreases of 22% and 92%, respectively, compared to the same period last year. The Poland K9 self-propelled howitzers and others will be exported in earnest from the second quarter, and as of the end of the first quarter, the backlog of orders in the defense sector stands at approximately 30.3 trillion KRW.

On the 24th, a guided missile with a range of 290 km was test-fired from the Polish-type Cheonmu HOMAR-K at the Anheung Test Site of the Defense Science Research Institute in Taean, Chungnam.
[Photo by Hanwha Aerospace]

The aerospace sector achieved sales of 443.4 billion KRW, a 14% increase year-on-year, due to an increase in civil aircraft engine volume driven by rising passenger demand. Operating profit was 2.9 billion KRW, down 82% compared to the previous year. Hanwha Aerospace explained that this was due to an increase in sales from relatively low-profitability businesses.

Subsidiary Hanwha Vision achieved sales of 310 billion KRW and an operating profit of 52 billion KRW, marking increases of 13% and 40%, respectively, compared to the same period last year, driven by strong CCTV business centered in North America and the United Kingdom.

Hanwha Aerospace stated, "From the second quarter, exports to Poland will be in full swing, and as we await the final announcement of the Romania self-propelled howitzer project results, we expect the annual sales and operating profit of the defense sector this year to increase compared to the previous year."