STX targets $28.7bn in sales in 2012

3 January 2012 (Last Updated January 3rd, 2012 18:30)

South Korea's STX Group is aiming to achieve KRW33tn ($28.7bn) in sales during this coming year, which will be an increase of 14% compared with sales of KRW29tn ($25.23bn) last year.

South Korea’s STX Group is aiming to achieve KRW33tn ($28.7bn) in sales during this coming year, which will be an increase of 14% compared with sales of KRW29tn ($25.23bn) last year.

The company is also aiming for KRW43tn ($37.1bn) worth of orders in 2012, an increase of 43% against last year’s KRW30tn ($26.1bn) order book.

The company has set a target of $15bn for its subsidiaries, which include STX Offshore & Shipbuilding, STX Europe and STX Dalian, up by 54.6% compared with 2011’s $8.2bn worth of new orders.

STX Group chairman Kang Duk-Soo suggested a five-point action plan for STX in 2012. The management policy aims to achieve steady growth by internal stability – all-out marketing and sales, improving profitability by innovative management efficiency, enhancing manufacturing competitiveness, settling to reach Vision 2020 and fostering human resources.

STX Group previously said that the company will boost sales to around KRW120tn ($103bn) by 2020.

In the shipbuilding segment the company plans to raise its target to more than KRW10tn in sales each from Korean, European and Chinese operations.

He also said that the group aims to balance its earnings among its businesses from the current structure that relies heavily on ships, shipping and related equipment.

While unveiling its 2020 vision, the company said it will expand into eco-friendly engines and aim to bring in at least KRW10tn in revenue and KRW600bn in operating profits from engines.

In November 2011, STX Europe, a subsidiary of STX Group, achieved operating revenues of NKr5.2bn ($881.88m) and EBITDA of NKr650m ($109.33m) in the third quarter of 2011, compared with NKr367m ($61.73m) in the same period last year.

The company reported year-to-date EBITDA of NKr1.6bn ($269.46m) compared with NKr660m ($111m) in the same period last year.

STX Europe posted pre-tax profit in Q3 2011 of NKr535m ($89.98m) compared with NKr195m ($32.79m) last year, and the year-to-date profit before tax of NKr1.277bn ($ 214.79m) compared with NKr141m ($23.71m) in the same period last year.

For the same month, STX Group’s subsidiary STX OSV Holdings reported a 52% increase in profit to NKr557m ($96.94m) for the third quarter of 2011 compared with the NKr724.6m ($63.70m) it recorded in Q3 2010.

The Norway-based shipbuilder’s third quarter revenue increased by 57% to NKr3.35bn ($583.07m) compared with NKr2.14bn ($372.47m) for the same period in 2010.

For the third quarter of 2011 the company posted EBITDA of NKr589m ($102.51m), an increase of 48% compared with the prior year’s NKr397m ($69.09m).

STX OSV received orders worth $883m for 14 vessels in the first nine months of the year, compared with the NKr12.6bn ($2.1bn) worth of orders it won in the whole of 2010.

The company won orders worth NKr809m ($140m) during Q3 2011, and has won two more confirmed contracts since then.