Samsung Heavy Industries will aim to achieve an operating profit next year. This can achieved by the increased order volume and reduced fixed costs. the company’s CEO, Nam Joon-ou said.
Nam Joon-ou noted that a better demand can result in orders of US$8.2 billion in 2018, compared to $6.9 billion in 2017.
Furthermore the company is able to achieve approximately 7 trillion won ($6.5 billion) in sales in 2019, compared to an estimated 7.9 trillion in 2017, Yonhap news agency reported.
Moreover, in order for the company to succeed its plans to raise 1.5 trillion won (US$1.3 billion), it will issue new shares, as an improvement in the shipbuilding industry is expected.
South Korean shipbuilders have struggled the last years, since 2008, facing an oversupply of vessels and declining orders, Yonhap said.
Nam Joon-ou also suggested the employees to join the company’s efforts to cut fixed costs, by reducing their basic pay by 10%, but he did not give a specific time frame.
Recently, Samsung Heavy Industries reduced the number of its executives to 50 from 72, during a reshuffle.
