A rendering of Hanwha Systems' new Gumi plant. [Hanwha Systems]
A rendering of Hanwha Systems' new Gumi plant. [Hanwha Systems]

Hanwha Systems said Tuesday its second-quarter operating profit reached 103.7 billion won ($70.8 million), a 219 percent increase from the same period a year earlier.

Sales rose 45 percent to 1.12 trillion won over the same period, while net profit for the period climbed 14 percent to 52.7 billion won. The company attributed the sharp gains in sales and operating profit to contracts secured over the past one to two years progressively flowing through to its earnings. Its order backlog stood at 11.3 trillion won as of the end of June.

In the defense segment, large-scale export projects — including sighting systems and fire-control equipment for Poland's K2 tanks — along with major domestic programs such as the combat management system for the next-generation Ulsan-class Batch III frigate drove earnings growth. The ICT segment posted stable results, underpinned by system-building projects for affiliates including a next-generation system for Hanwha Life and a smart plant initiative for Hanwha Aerospace.

Hanwha Systems plans to sustain steady growth this year by expanding its export portfolio while continuing to secure major domestic contracts.

"Stable revenue from large-scale export projects and key domestic mass-production programs drove the earnings improvement," a Hanwha Systems official said. "We will continue to build a solid foundation for sustainable growth by developing overseas markets and strengthening our core technology capabilities."


yeongdai@heraldcorp.com