Daewoo Ship Builders to Fire Executives and Sell Assets As Part of Restructure

kpopluv, Aug. 11, 2015, 10:11 a.m.

Daewoo Shipbuilding & Marine Engineering Co., South Korea's No. 2 shipbuilder, said Tuesday that it will push for restructuring moves, including asset sales and a reduction in the number of executives, as it reels from massive losses. The shipyard said it will cut the number of executives by some 30 percent and slim down its structure. It also said it will push to sell assets, including its overseas affiliates that suffer continued losses and its headquarters in Seoul, to improve its financial footing.

The cost-cutting measures came as the world's No. 2 shipyard suffered a record loss in the second quarter of the year, largely due to increased costs stemming from a delay in the construction of low-priced ships and offshore facilities. The net loss came in at 2.39 trillion won (US$2 billion) in the April-June period, compared with a profit of 76 billion won a year earlier, the company said earlier.

Its operating loss reached 3.03 trillion won in the second quarter, in sharp contrast with an operating income of 103 billion won a year earlier, while sales dropped 63 percent to 1.66 trillion won over the cited period. In the first half of the year, its net loss reached 2.56 trillion won, and its operating loss stood at 3.08 trillion won.

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