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Hyundai E&C shifts to Q4 loss on FX losses

The corporate logo of Hyundai Engineering & Construction Co. (Yonhap)
The corporate logo of Hyundai Engineering & Construction Co. (Yonhap)
Hyundai Engineering & Construction Co., a major South Korean builder, said Friday it shifted to a net loss in the fourth quarter from a year earlier due to currency-related losses.

For the three months that ended in December, Hyundai E&C swung to a net loss of 122 billion won ($110.6 million) from a net profit of 6.9 billion won in the same period of last year, the company said in a regulatory filing.

The company said the US dollar's strength against the won mainly contributed to the loss.

The dollar rose to an average of 1,188.54 won in the fourth quarter from 1,175.81 won a year ago. A weak won drives up the value of dollar-denominated debts when converted into the local currency.

The builder said sales fell 6.6 percent on-year to 4.32 trillion won, and its operating profit tumbled 47.2 percent to 89.9 billion won.

For the whole of 2020, Hyundai E&C posted net profit of 227.6 billion won, down 60.3 percent from the previous year.

Operating profit fell 36.1 percent on-year to 548.9 billion, while sales fell 1.8 percent to 16.9 trillion won from 17.2 trillion won. (Yonhap)