Daewoo Shipbuilding forecasts record sales

Daewoo Shipbuilding & Marine Engineering, the world's third-largest shipbuilder, said that the sales would hit a record Won9,900bn ($10.6bn) in 2008 as increasing demand drives up vessel prices.

Analysts expect South Korean shipbuilders to post strong earnings this year as they boast order backlogs that will keep them busy for at least three years. Ship prices have more than doubled to a record since they hit a 10-year low in 2003, as global economic growth has fuelled demand for consumer goods and raw materials.
Daewoo did not provide an estimated sales figure for last year but this year's target is about 40 per cent more than the Won 7000 bn it projected for 2007 at the beginning of last year. Competition is expected to be fierce this year as production capacity has expanded globally and raw material prices are surging. Orders for offshore platforms and container ships are expected to lead demand this year. Hyundai Heavy Industries, the world's largest shipbuilder and Daewoo's domestic rival, is also expecting another strong year.
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