Samsung Heavy Replaces CEO After Warning of Heavy Losses
Samsung Heavy Industries Co. , the world’s third-biggest shipyard by capacity, replaced its chief executive on Monday after having warned last week of heavy losses that wiped away nearly a third of its market value.
The South Korean company’s president and CEO, Park Dae-young, resigned and took responsibility for widely missing targets for sales and the trimming of jobs. Its order book has slumped to roughly $20 billion this year, from $45 billion in 2013.
Samsung Heavy shares fell 29% last week after the company said it expected an operating loss of 490 billion won ($450 million) this year and a loss of 240 billion won in 2018. Analysts were expecting a profit of 90 billion won for 2017. Its shares fell 1.31% Monday.
The company also said it needs to raise 1.5 trillion won in new shares, after issuing 1.1 trillion won in new paper last year, further diluting the value of its existing shares. Tech giant Samsung Electronics Co. is Samsung Heavy’s biggest holder, with a 16.9% stake.
A 40-year veteran of Samsung Heavy, Mr. Park has been replaced by another longtime employee, Joonou Nam.
Write to Costas Paris at costas.paris@wsj.com