Hanwha Systems said on the 6th that, on a consolidation basis, it posted 3.6642 trillion won in revenue and 123.6 billion won in operating profit last year. Compared with a year earlier, revenue rose 30.7%, topping the 3 trillion won mark for the first time since the company's founding, but operating profit fell 43.7%.
The revenue increase was driven by defense exports. Exports of the Cheongung-II multifunction radar (MFR) to the United Arab Emirates (UAE) and Saudi Arabia, supply of the fire control system for Poland's K2 tanks, and mass production of next-generation military radios for the Tactical Information and Communications Network (TICN TMMR) supported the improvement in results.
However, Hanwha Systems explained that operating profit declined as costs to normalize the United States Philly Shipyard, which it acquired jointly with Hanwha Ocean two years ago, and amortization expenses under purchase price allocation (PPA) were reflected. It said investment expenses for facilities at the new Gumi business site completed last year and the Jeju Space Center also had an impact.
Hanwha Systems' fourth-quarter operating profit was 9.4 billion won, down 67.6% from a year earlier. Fourth-quarter revenue and net loss were 1.3981 trillion won and 23.9 billion won, respectively.