Hanwha Aerospace logs record profit in Q2

Hanwha Aerospace posted record operating profit of 358.8 billion won ($260 million) in the second quarter thanks to arms exports to Poland, the Korean defense firm said Wednesday.

According to the company, operating profit surged by 357 percent compared to the second quarter of last year. Hanwha Aerospace logged 2.79 trillion won in revenue, up 46 percent on year. The earnings exceeded market expectations.

Hanwha explained that the delivery of six units of K9 self-propelled howitzers and 18 units of the multi-caliber rocket artillery system Chunmoo to Poland in the April to June period boosted its sales figures. The company’s defense business recorded 26.1 billion won in operating profit, up 1089 percent on year.

In July 2022, Hanwha Aerospace and the Polish State Armament Agency agreed on a framework to export 672 units of the Korean defense firm’s K9 self-propelled howitzers and 288 units of the multi-caliber rocket artillery system Chunmoo in a deal estimated to be worth around 30 trillion won in total.

Hanwha Aerospace’s aviation business also saw its revenue and operating profit go up in the second quarter. The company attributed the increase to an uptick in the demand for aviation engine parts with more people traveling overseas after the COVID-19 pandemic.

“At the end of the second quarter, (our) order backlog was about 30.3 trillion won,” said a Hanwha Aerospace official. “We will continue to expand the global market in the second half of this year and steadily deliver the existing supplies to solidify our position as a company that logs higher earnings in the overseas business than the domestic sector this year.”

Earlier this month, Hanwha Aerospace announced it had secured a 1.4 trillion won arms contract with Romania to export 54 units of the K9 self-propelled howitzer and 36 units of the K10 ammunition resupply vehicle. Delivery of the arms machinery will start in phases in 2027. The K-9 self-propelled howitzers are currently used in nine countries: South Korea, Turkey, Poland, India, Finland, Norway, Estonia, Australia and Egypt.