Hyundai Heavy's operating profit turns black for first time in 10 quarters

Hyundai Heavy Industries, the world's largest shipbuilder, saw its operating profit turn into the black for the first time in 10 quarters during the first quarter, a regulatory filing showed Tuesday.

Consolidated operating profit was 325.2 billion won (283 million U.S. dollars) during the January-March period, the first turnaround in 10 quarters from a series of operating losses.

From the third quarter of 2013 to the fourth quarter of 2015, Hyundai Heavy's operating losses surpassed 4 trillion won.

Revenue declined 16 percent from a year earlier to 10.27 trillion won in the first quarter, but the company posted a net profit at 244.5 billion won, succeeding in turning into the black.

The turn into the black was mainly attributable to favorable foreign-exchange rate moves, lower production costs and improved performance in non-shipbuilding businesses, indicating the still remaining uncertainties in the shipbuilding business.

The company reportedly erased massive losses in offshore plant orders, which Hyundai Heavy received at a low price, while eliminating low-priced shipbuilding orders. Enditem