Samsung Heavy Industries Co. said Tuesday that its third-quarter net profit plunged 82 percent from a year earlier on delivery of low-priced ships and less orders.
Net profit reached 23.4 billion won (US$21 million) in the July-September period, compared with a profit of 129 billion won a year earlier, the company said in a regulatory filing.
Operating income reached 23.6 billion won in the third quarter, sharply down from an operating income of 84.1 billion won a year earlier.
Its sales dropped 37 percent on-year to 1.75 trillion won over the cited period.
The shipyard said the weak bottom line was due to a decline in sales and operating income that resulted from the stoppage of some docks amid less orders.
Its debt reached 3.7 trillion won as of end-September, a sharp drop from 5.3 trillion won tallied at the end of last year.
Last year, the shipyard suffered a loss of 139 billion won, compared to a loss of 1.21 trillion won from a year earlier.
The shipbuilding industry, once regarded as the backbone of the country’s economic growth and job creation, has been reeling from mounting losses caused by an industrywide slump and increased costs.
The shipbuilders have drawn up sweeping self-rescue programs worth some 11 trillion won in a desperate bid to overcome a protracted slump and mounting losses.