Asia/Pacific News
DSME Profits Plummet 82%
Profits for South Korea's Daewoo Shipbuilding & Marine Engineering Co. (DSME) fell 82 percent in 2012 due to lower rates the company agreed to in 2009, Dow Jones Newswire reports.
The company also lowered its order target for 2013, aiming for $13 billion this year compared $14.3 billion in orders last year.
DSME made a net profit of 137 billion South Korean won ($125 million) for 2012, down from 743 billion won (686 million) in 2011.
"Investment losses and provisions for the operation of its overseas unit in Romania dealt a heavy blow to the bottom line," a company spokesman told Dow Jones Newswire.
The company has a 51 percent stake in a Romanian shipbuilding company.
On a positive note for the year, DSME's sales rose 2.5 percent to 12.6 trillion won ($11.6 billion), compared with 12.3 trillion won ($11.4 billion) the previous year.
The shipbuilding industry has been hit hard by economic conditions and overcapacity, particularly in China, but a report in September suggested the industry was faring better in South Korea.
