Daewoo Shipbuilding books profit first time in six years 

Daewoo Shipbuilding books profit first time in six years 

For the first time since 2011, South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) has recorded a profitable financial year. 

The company recorded a net income of KRW 669.9 billion (USD 629.7 million) in 2017, compared to a loss of KRW 2.79 trillion posted a year earlier, DSME said in a stock exchange filing.

In addition, operating profit stood at KRW 773 billion in 2017, against an operating loss of KRW 1.53 trillion seen in the corresponding period a year earlier.

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The improvement, according to the company, was due to a restructuring plan which has focused on reducing labour and other costs and creating an efficient production system.

DSME revealed it will continue with its self-rescue plan in 2018, which is worth KRW 1.3 trillion.

Despite the profit increase, sales amounted to KRW 11.1 trillion, dropping 13.4 percent year over year. This was due to a turmoil in the shipbuilding industry caused by a drop in orders due to overcapacity.

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In 2018, DSME expects to generate KRW 10 trillion in sales and USD 7.3 billion in orders.