The Best Company in Shipbuilding industry
Ⅰ. Intro: The reason why we chose the shipbuilding industry
1. The representatives of companies in shipbuilding industry : 4 Korean companies, 1 Japanese company, 1 Chinese company, 1 American company 2. The market conditions of the shipbuilding industry from 2008 to 2010 ( explain the reason why we set the period from 2008 to 2010)
3. Explanation about ratios
4.To show the financial highlights of the companies
5.Calculate and analyze the companies based on suggested ratios
(Return on equity, earnings per share, net profit margin, inventory turnover, debt/equity ratio, and dividend yield)
Ⅲ. Conclusion: Pick up the best company
1. The reason why we chose the shipbuilding industry
1) The trademark of Korean Industry
The shipbuilding industry is one of trademarks in Korean industries. Without the shipbuilding industry, we can’t expect present Korean economy. It means Korea is the power of the shipbuilding industry in the world.
Korean Shipbuilders Take the Lead in Global Orders. Korea's three largest shipbuilders have seen their new orders soar, almost reaching the level of the last industry boom in 2007. According to data released by the industry on Wednesday, March, 2, 2011, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries have won a combined US$21.7 billion in orders so far this year. That's nearly four times the $5.2 billion won by the Chinese shipbuilding industry during the period. Despite being distant to a full recovery of the global shipbuilding industry, Korean shipbuilders' strong performance can be attributed to orders for large-sized container ships, drillships and LNG vessels, where Korean companies have taken the technological lead compared to China. Korean companies had won 17 out of 24 orders for drillships worldwide so far 2004..
2) It is related to one of South Korea’s great success stories. It was only in 2004 that South Korea definitively wrested from Japan the title of world's largest shipbuilding nation. But South Korea is already looking over its shoulder at China, which has embarked on a path toward becoming the world's largest shipbuilder by 2015. South Koreans know well that 1,000 kilometers, or 650 miles, from here, a similarly barren shoreline south of Shanghai is undergoing a $4 billion transformation that is aimed at making China State Shipbuilding the world's largest ship maker. "The South Koreans are always working to keep three, four, five steps ahead of the Chinese and Japanese," said Peter Bartholomew, managing director with Industrial Research & Consulting, a business consulting company. "Now the South Koreans are moving more toward the Lexus end in order to have an edge over the Chinese."(Jan,6, 2005- The New York Times) The explosion in trade in and out of China has created a worldwide shortage of ships. Drewry Shipping, a London-based consultancy, said container shipping capacity expanded by 10 percent in 2004 and predicted it would grow 12 percent in 2005 and 14 percent in 2006.With empty hulls in short supply, some shipping rates doubled this year. In response, shipping companies are scrambling to order ships. After receiving record orders in 2004 - for 102 ships worth $8.3 billion - Hyundai can afford to be particular. With more than three years of work already booked, Hyundai can afford to let Chinese yards win contracts for low-end jobs like simple tankers or bulk carriers. Hyundai has three joint ventures in China, and it already farms out some of its low-technology shipbuilding to these companies.South Korea's other two major shipbuilders, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, are juggling a similar wealth of orders. As China and other countries move to LNG, consumption of this comparatively...