Poongsan said in a filing on the 30th that, on a consolidation basis, it posted first-quarter revenue of 1.2709 trillion won and operating profit of 90.2 billion won, based on preliminary figures.
Revenue rose 9.9% from a year earlier, and operating profit increased 29.3%. Net profit came to 78 billion won, up 87.7% from the same period a year earlier. Poongsan's first-quarter results fell short of forecasts in the securities industry.
By business, the fabricated copper products institutional sector benefited from higher copper prices in terms of revenue, but sales volume itself declined from a year earlier. First-quarter revenue in the fabricated copper products institutional sector was tallied at 812.1 billion won, up 30.4% from a year earlier.
In the defense institutional sector, first-quarter revenue came in at 156.7 billion won, down 23% year over year. Poongsan said revenue was deferred as acceptance tests (tests that determine whether to accept delivery) were delayed. It added that some revenue was also deferred due to restrictions on shipments to the Middle East.
Poongsan expects results to improve in the second quarter. Poongsan plans to diversify exports to Europe, India and South America and increase the share of high-margin products. It also plans to increase customers for tin bronze thin sheet and pure copper heat spreaders for data centers.
In the defense field, it plans to coordinate acceptance test schedules with counterpart countries and ship volumes bound for the Middle East in a timely manner.