"Record Quarterly Performance"… Hanwha Aero, Q3 Operating Profit of 477.2 Billion Won

Defense Sector Operating Profit Up 715%

Hanwha Aerospace has set a new record for the highest quarterly performance in the third quarter, driven by growth in operating profit in the defense sector.

Hanwha Aerospace announced on the 31st that it recorded consolidated sales of 2.6312 trillion KRW and operating profit of 477.2 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 62% and operating profit by 457%. Although sales slightly decreased compared to the previous quarter due to the spin-off of Hanwha Industrial Solutions conducted in September, operating profit achieved the highest quarterly record ever thanks to the solid profitability of the defense sector.

Hanwha Aerospace Pangyo R&D Center exterior. [Photo by Hanwha Aerospace]

By business segment, the defense sector achieved sales of 1.656 trillion KRW and operating profit of 439.9 billion KRW, marking increases of 117% and 715% respectively compared to the same period last year, recording the highest quarterly operating profit. The exports of Poland K9 and Cheonmu, which began in earnest from the second quarter, continued into the third quarter, and domestic business also started full-scale mass production, driving the performance.

The aerospace business recorded sales of 477.9 billion KRW, a 22% increase compared to the same period last year, but posted an operating loss of 6 billion KRW due to losses reflected from the GTF engine development participation in the form of RSP, resulting in a return to deficit.

Subsidiary Hanwha Systems recorded sales of 639.2 billion KRW and operating profit of 57 billion KRW, a 44% increase compared to the same period last year. Setrec Eye, in which Hanwha Aerospace has invested shares, also achieved sales of 43.7 billion KRW and operating profit of 800 million KRW in the third quarter, successfully turning profitable.

A company official stated, "In the fourth quarter, overseas exports including Poland and expansion of domestic volume are expected to be reflected in the performance," adding, "We will focus the company's capabilities on the defense sector and strengthen global competitiveness as well as domestic demand to grow into an export-driven company."