(LEAD) LIG D&A Q2 net down 24.4 pct on increased financing costs

South Korean defense company LIG Defense & Aerospace Co. (D&A) reported a significant decline in net profit for the second quarter of 2023, with a 24.4 percent decrease compared to the same period last year. The company's net profit for Q2 2023 amounted to 78.2 billion won ($55.1 million), a stark contrast to the 103.5 billion won earned in Q2 2022.

Despite the profit dip, D&A's operating profit saw a 29.5 percent increase, reaching 105.7 billion won. Revenue for the quarter also rose by 17.4 percent, totaling 1.11 trillion won.

The dip in net profit can be attributed to increased financing costs, stemming from the company's heightened investment spending. LIG D&A's order backlog stood at an impressive 24.57 trillion won by the end of the second quarter. The company's guided weapons business, particularly the mass production of the Cheongung-II medium-range surface-to-air missile system, saw a surge in sales.

Additionally, D&A reported growth in other key business segments such as avionics, electronic warfare (AEW), and intelligence, surveillance, and reconnaissance (ISR).

In an effort to expand its global presence, LIG D&A is preparing to open a representative office in Peru. Furthermore, the company has signed a strategic partnership with Britain's Babcock, signaling its commitment to international growth.