Seoul: Hanwha Systems Co. announced on Monday that its operating profit for the first quarter surged by 28 percent year-on-year, reaching 58.2 billion won (US$40.3 million). This rise in profit is attributed to strong exports of its defense systems.

According to Yonhap News Agency, the company’s sales for the January-March period increased by 26.8 percent year-on-year, totaling 690.1 billion won on a consolidated basis. This growth was fueled by significant advancements in key defense exports. Despite the increase in sales and operating profit, Hanwha Systems reported a net profit decline of 18.6 percent to 41.0 billion won.

The operating profit surpassed the market consensus of 40.7 billion won, as compiled by Yonhap Infomax. Hanwha Systems credited the robust quarterly performance to several large-scale programs. These include the export of K2 tank fire control systems to Poland, the sale of multi-function radars (MFR) for the Cheongung-II missile system to the United Arab Emirates and Saudi Arabia, as well as the second-phase mass production of next-generation military radios.