Economics
Samsung Heavy Has Record Plunge on Share Sale, Loss Forecast
- Shipbuilder forecasts operating loss this year and in 2018
- Stock tumbles most on record in early trading Wednesday
Samsung Heavy Seeks $1.4B Share Sale
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Samsung Heavy Industries Co. plunged the most on record in Seoul trading after forecasting surprise losses and announcing a share sale plan, underscoring the bleak outlook for the global shipbuilding industry.
The world’s third-largest shipbuilder said Wednesday it plans to raise 1.5 trillion won ($1.4 billion) by selling new shares in a rights offering. Samsung Heavy, saddled with 3.3 trillion won of short-term debt, expects demand for new vessels and offshore projects to continue shrinking and that will push the company into losses this year and next, compared with analyst estimates for a profit.