Samsung Heavy returns to profit in Q3

Samsung Heavy Industries Co., a major South Korean shipyard, on Thursday said that it swung to the black in the third quarter from a year earlier, as the shipbuilder cut costs to survive an industrywide downturn and low oil prices.

Samsung Heavy reported a net profit of 129 billion won ($113 million) for the July-September period compared with a loss of 25 billion won for the same quarter last year.

At the operating level, the shipbuilder posted a profit of 84 billion won for the third quarter, compared with a loss of 10 billion won for the same quarter last year.

Third-quarter sales jumped 14 percent on year to 2.43 trillion won.

Samsung Heavy and other South Korean shipbuilders are grappling with falling orders and fierce competition with Chinese shipyards.

Samsung Heavy had drawn up a 1.45 trillion won self-rescue plan, including stock sales and job cuts, as it grappled with falling freight rates amid slackened global demand and tougher competition.

The plan also includes selling noncore assets and suspending part of its production facilities. (Yonhap)