Daily Management Review

Daewoo's Shipyards : The Worst is Over for the Company


South Korean shipbuilding company Daewoo Shipbuilding & Marine Engineering Co. (DSME) has declared that the worst is behind the company. The company expects to reach the profit for the current quarter after a record loss in 2015.

Wei-Te Wong
Wei-Te Wong
The second largest producer of ships in the world is going to receive this year's orders for a total of $ 10.8 billion compared with $ 4.5 billion last year. In 2015, due to the fall in oil prices to the lowest in more than a decade, DSME customers cancelled or postponed orders for offshore rigs. As a result, Daewoo Shipbuilding program significantly reduced, and the operating loss of the company amounted to 5.51 trillion won ($ 4.6 billion) last year. The company's revenue fell by 23% to 13 trillion won.

At the end of October 2015, the company reported about earnings awaited in 2016, as construction of a large number of LNG carriers is expected to be completed in the current year.

Daewoo expects that sales in 2016 will amount to 10-12 trillion won. Proceeds from the shipbuilding industry will amount to 55% of this year’s revenue, offshore projects - 33% of total revenue.

At the time, Daewoo Shipbuilding plans to lay off about 30 thousand contractors' workers. Now, the number of employees is 45 thousand. Layoffs will be gradual, the company's management has not named the exact timing.

The aggregate operating loss of the largest shipbuilding companies in the world - Korean Hyundai Heavy Industries Co., Daewoo Shipbuilding and Samsung Heavy Industries Co. - amounted to 8.55 trillion won last year. According to head of Daewoo Shipbuilding Sung-Leep Jung, shipbuilding industry in South Korea will recover in the second half of 2017.

source: yonhapnews.co.kr

Science & Technology

Airbus: Passenger hybrid aircraft to take off before 2035

Ocado To Introduce ‘Mini Robotic Warehouse’ With Standard Productivity

AB InBev’s Piled Up Alcohol Is ‘Too Good to Waste’

Ericsson Mobility forecasts nearly fourfold increase in mobile traffic by 2025

Elon Musk: We received 146,000 orders for Cybertruck

Google turns the screws on political ads

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

World Politics

World & Politics

Poland refuses to join EU 2050 climate deal

EU to fight food waste

Mexico approves amendments to NAFTA

Finnish parliament to vote for prime minister

Protests in France gain the greatest scale since 2010

Massive blackout unfolds in Venezuela

French And Russian Presidents To Discuss The Moratorium On Missiles In Europe

EU adopts budget for 2020, more funds allocated to climate change fight and innovation