Samsung Heavy Industries Co., a major South Korean shipyard, said Friday that it swung to a net loss in the first quarter from a year earlier due to dwindling sales and fixed costs.
Samsung Heavy said in a regulatory filing that it posted a net loss of 59.5 billion won (US$55 million) in the three months that ended on March 31 compared with a net profit of 58.7 billion won a year earlier.
The company said fixed costs amid decreased sales and higher thick steel plate prices cut into its quarterly bottom line.
Operating losses reached 47.8 billion won in the first quarter, shifting from a net profit of 27.4 billion won a year earlier, Samsung Heavy said.
Sales fell 49.1 percent to 1.24 trillion won over the cited period.
In December, Samsung Heavy said its operating losses in 2018 could narrow to 240 billion won from an estimated 490 billion won in 2017.
South Korean shipbuilders have struggled with an oversupply of vessels and declining orders since the 2008 financial crisis. (Yonhap)