Hanwha Aerospace swings to Q3 net loss due to delayed weapons deliveries

Korean defense manufacturer Hanwha Aerospace reported a net loss for the third quarter, with revenue declining compared to the same period last year. The company's net loss amounted to 36.7 billion won, a significant drop from the 699 billion won profit reported a year earlier. Operating profit took a hit, falling by 46.2 percent year-on-year to 452 billion won. Revenue for the quarter dropped by 6 percent, reaching 6.09 trillion won.

Hanwha Aerospace cited delayed deliveries of weapons as a key factor contributing to the weaker performance. Notably, the delayed K9 self-propelled howitzer deliveries to Poland were expected to take place in the fourth quarter. Some deliveries had been completed ahead of schedule during the second quarter. The ground defense division generated revenue of 1.24 trillion won, alongside an operating profit of 21.7 billion won. As of the end of September, the company's order backlog stood at 35 trillion won.

The aerospace division, on the other hand, reported revenue of 659.9 billion won, but also incurred an operating loss of 2.4 billion won. The increased delivery of geared turbofan (GTF) engines to clients led to higher losses under the company's risk-based accounting system.