LIG Defense & Aerospace Reports Q3 Net Loss Due to Expansion Costs

LIG Defense & Aerospace Co. has announced a significant shift to a net loss in the third quarter of this year, attributed mainly to high costs incurred during its facility expansion efforts.

The company reported a net loss of 8.2 billion won (approximately $6 million), a stark contrast to the net profit of 54.2 billion won recorded in the same period last year. Operating profit also saw a decline, dropping by 24.6% year-on-year to 67.6 billion won, despite a slight increase in sales by 2.1% to 1.07 trillion won.

A key factor contributing to this financial downturn was a one-time charge of around 22 billion won related to the demolition of existing facilities to enhance production capacity at its plant located in Gumi, South Korea. Additionally, unfavorable exchange rates further impacted the company’s earnings.

Despite these challenges, LIG D&A experienced growth in sales, particularly driven by the delivery of Cheongung-II medium-range surface-to-air missile systems to clients in the UAE and Saudi Arabia. The company also reported increased sales in several critical business segments, including avionics, electronic warfare, and unmanned surface vessels.

As of the end of September, LIG D&A's order backlog stood at an impressive 24.5 trillion won, indicating a strong demand for its products despite the recent financial setbacks.