MaritimeNews ® 09-Фев-2018 16:00
Image Courtesy: HHI
South Koran shipbuilder Hyundai Heavy Industries (HHI) ended the fourth quarter of 2017 with a widened net loss.
HHI suffered a net loss of KRW 572.3 billion (USD 524.8 million) in 4Q 2017, compared to a loss of KRW 351.8 billion seen in the corresponding period a year earlier.
The shipbuilder’s operating loss stood at KRW 342.2 billion in the fourth quarter of 2017, against an operating income of KRW 61.2 billion posted in 4Q 2016.
What is more, sales dropped by 33 percent to KRW 3.48 trillion in 4Q 2017 from KRW 5.19 trillion recorded in the same quarter of 2016.
As a result of the company’s worsened earnings and dwindling order backlogs, union members at HHI supported a wage deal with management, Yonhap News Agency reported.
As informed, the deal covers the fiscal years of 2016 and 2017. Under the terms of the deal, each HHI employee will receive a month of extra salary plus KRW 1.5 million (USD 1,380) in bonus. The workers’ basic pay will be frozen for the two years.
HHI is encouraging workers with an additional KRW 1.5 million in cash for 2017 to overcome the current slowdown in the industry.
The shipbuilder has set sights on reaching KRW 7.99 trillion in sales during 2018. HHI’s 2018 sales target represents a 60 percent decline from the one a decade ago. The lower aim was set due to a decline in order backlogs, which is expected to continue this year as well.
-Source: worldmaritimenews.com
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