Hanwha Aerospace said Thursday that it recorded consolidated revenue of 6.0943 trillion won and an operating profit of 452 billion won for the third quarter of this year. Revenue decreased by 6% and operating profit fell by 46% compared to the same period last year.
The core land defense segment posted revenue of 1.2455 trillion won and an operating profit of 21.7 billion won. This was due to the delivery of major projects, including the second batch for Poland's K9 program, being concentrated in the fourth quarter, as well as some quantities being delivered early in the previous second quarter.
Performance is expected to recover at a faster pace starting from the fourth quarter. Deliveries for the second batches of Poland's K9 and Cheonmu systems are set to begin in earnest, while K9 projects in Egypt and Australia will also proceed. Growth is projected to continue next year as well, with production of already secured orders entering full swing.
New order intake remains steady. In August, Hanwha Aerospace entered into a K9 export execution contract with Spain's Indra Systems, marking its entry into the Western European market. Its U.S. subsidiary, Hanwha Defense USA, won a prototype supply contract for the U.S. Army's Next Generation Maneuver Tactical Cannon (MTC) program.
In September, it signed an export contract worth approximately 410 million euros (approximately 640 billion won) for 18 Cheonmu systems with Croatia. The number of countries in Europe adopting the Cheonmu system has increased to four. Domestically, it secured a mass production contract for the multi-purpose unmanned vehicle "Arions Met." The order backlog for the land defense segment stands at approximately 35 trillion won.
The aerospace segment remained in the red with revenue of 659.9 billion won and an operating loss of 2.4 billion won. This was the result of losses from the International Joint Development Program (RSP) due to increased deliveries of GTF engines being reflected.
Subsidiaries performed relatively well. Hanwha Systems achieved revenue of 831.6 billion won and an operating profit of 99.1 billion won, driven by increased defense sales including Multi-Function Radar (MFR). These figures increased by 30% and 60%, respectively, compared to the same period last year.
Hanwha Ocean posted revenue of 3.4139 trillion won and an operating profit of 485.7 billion won, benefiting from an expanded share of high-margin commercial vessels. Revenue and operating profit increased by 13% and 68%, respectively.
An official from Hanwha Aerospace stated, "While the third quarter was affected by delivery schedule adjustments and one-time costs, performance will improve substantially starting from the fourth quarter," adding, "The Daejeon plant will prioritize safety to minimize any impact on production disruptions."
in INDUSTRY
