Hanwha OP up 53.4% on year in Q2 on sound biz of subsidiaries

[Photo provided by Hanwha Corp.]

Hanwha Corp., the holding company of South Korea’s Hanwha Group, delivered a 53.4 percent year-over-year increase in operating profit from April to June on the back of strong performance of energy and defense operations.

The company estimated its operating profit in the second quarter ended June at 769 billion won ($673 million) in its earnings guidance disclosed on Friday, down 9.37 percent from the previous quarter but up 53.4 percent from a year earlier.

Sales were projected at 12.68 trillion won, down 1.25 percent on quarter but up 15.2 percent on year. Net profit declined 30.2 percent on quarter but rose 63.1 percent on year to 572.1 billion won.

Hanwha shares closed Friday 0.7 percent higher at 30,550 won.

The sound earnings were driven by better-than-expected earnings of its main subsidiaries, the company said.

Hanwha Solutions Corp., the chemical arm, delivered the largest-ever quarterly sales of 2.8 trillion won during the April to June period thanks to the robust performance of its core chemical business.

Its aviation and defense unit Hanwha Aerospace Co. also reported improved profits, and Hanwha Life Insurance Co. posted almost 100 percent on-year increase in operating profit and net income in the second quarter.

Along with the high-performing subsidiaries, Hanwha itself also saw its profitability improved, with the demand recovery in the manufacturing business and rebounding oil business.

“The growth momentum is expected to continue in the second half amid the global economic recovery and buoyant business,” said an official from the company. “We will focus on winning more orders in the next-growth engine businesses such as the secondary cell business, and entering new sectors including satellites and air mobility through our subsidiaries to ensure future growth.”

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