South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has recorded a quarterly decline in profits amid growing concerns about the repercussions of its proposed merger with Hyundai Heavy Industries (HHI).
DSME said in a filing to the Korean stock exchange on 15 May that in the quarter ending 31 March its sales fell 8% year-on-year to KRW2.07 trillion (USD1.74 billion). Net profit in the period was KRW195 billion, a decline of nearly 14%.
Commenting on the results, the company said market conditions for shipbuilders remained challenging, adding that earnings should increase based on a backlog of commercial vessels.
The company reported its financial performance on the same day that DSME’s employee trade union and the Korean Metal Workers’ Union jointly submitted a petition to the Korea Fair Trade Commission (KFTC) outlining concerns about HHI’s proposed acquisition of DSME.