Hanwha Systems announced on the 27th that it recorded consolidated revenue of 831.6 billion won and an operating profit of 99.1 billion won for the third quarter of this year. Revenue increased by 30% and operating profit rose by 60.5% compared to the same period last year.
The defense sector drove the strong results. This was due to large-scale export projects, such as the Cheongung-II multifunction radar (MFR) supplied to the United Arab Emirates (UAE), Saudi Arabia, and Iraq, being reflected in performance. As the UAE, Saudi Arabia, and Iraq have successively adopted the Cheongung-II, it has established itself as a representative K-defense export weapon in the Middle East market. Domestic projects, including the AESA radar and avionics equipment for the Korean fighter jet (KF-21), also contributed to the results.
In the ICT (Information and Communication Technology) sector, IT system development projects for affiliates, such as Hanwha Life's next-generation system and Hanwha Philly Shipyard's Enterprise Resource Planning (ERP) system, supported performance.
Net income for the period was limited to 3.8 billion won. This was due to the impact of accounting losses being reflected after classifying related results as discontinued operations following the decision to sell Hanwha Philly Shipyard. The loss does not affect revenue or operating profit. The completion of the transaction and final settlement results are expected to be reflected in future accounting treatments.
The order backlog at the end of the third quarter totaled 8 trillion 865.3 billion won. The defense sector accounted for the majority at 8 trillion 395.6 billion won, while the ICT sector was 469.7 billion won.
A Hanwha Systems official stated, "In the defense sector, we are promoting additional orders centered on overseas exports and space business, and in the ICT sector, we plan to respond to increasing IT demand, including ERP development for affiliates," adding, "We expect order growth of over 20% year-on-year in both sectors this year."
in INDUSTRY
