(LEAD) Hanwha Aerospace swings to Q3 net loss due to delayed weapons deliveries

SEOUL, Oct. 29 (Yonhap) -- South Korean defense firm Hanwha Aerospace Co. said Thursday it swung to a net loss in the third quarter, weighed down by delayed weapons deliveries and one-off costs.

The company posted a net loss of 36.7 billion won (US$27.5 million) for the July-September period, reversing a profit of 699 billion won a year earlier, according to a regulatory filing.

Operating profit fell 46.2 percent on-year to 452 billion won, while revenue declined 6 percent to 6.09 trillion won.

Hanwha Aerospace attributed the weaker performance partly to the postponement of K9 self-propelled howitzer deliveries to Poland until the fourth quarter. Some weapons deliveries had also been completed ahead of schedule in the second quarter.

The company's ground defense division reported revenue of 1.24 trillion won and operating profit of 21.7 billion won. Its order backlog stood at 35 trillion won as of the end of September.

The aerospace division posted revenue of 659.9 billion won and an operating loss of 2.4 billion won, as increased deliveries of geared turbofan (GTF) engines to its client led to higher losses under its risk- and revenue-sharing partnership (RSP) program with U.S. engine maker Pratt & Whitney.

Under the RSP arrangement, aircraft engine suppliers share development and production costs in exchange for a portion of future revenue.

Hanwha Aerospace expected earnings to recover in the fourth quarter, supported by planned deliveries of K9 howitzers and Chunmoo multiple rocket launchers to Poland, along with progress on K9 projects in Egypt and Australia.