Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, sank to a massive net loss of KRW2.21trillion ($2billion) for its 2014 financial year, as against a profit of KRW146.3billionn in 2013.
Full year revenue dipped 3% year-on-year to KRW52.58trillion as the South Korean shipyard struggles to recover its competitiveness through internal changes and innovations.
In the last quarter of 2014, HHI managed to narrow its deficit to KRW37.9billion from a loss of KRW1.46trillion in the third quarter due mainly to decline in operating loss and proceeds partly from selling shares to KCC, a construction materials company.
Apart from challenges from lower shipbuilding contract prices and higher operating costs, HHI’s Ulsan yard was also hit by a series of partial strikes with labour-management going through 71 rounds of negotiations since June last year.
A tentative wage deal was finally agreed on 31 December 2014.
Kwon Oh-gap, president and ceo of HHI, had said earlier that the shipbuilder has set itself an orderbook value target of $22.95billion for 2015
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