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By Kim Eun-jung

SEOUL, Aug. 6 (Yonhap) -- South Korean defense company LIG Defense & Aerospace Co. (D&A) said Thursday its net profit fell 24.4 percent in the second quarter from a year earlier due to higher financing costs associated with increased investment spending.

The company's net profit for the April-June period totaled 78.2 billion won (US$55.1 million), down from 103.5 billion won a year ago, according to a regulatory filing.

Operating profit rose 29.5 percent on-year to 105.7 billion won in the second quarter, while revenue increased 17.4 percent to 1.11 trillion won.

Its order backlog stood at 24.57 trillion won as of the end of the second quarter.

LIG D&A, formerly known as LIG Nex1, attributed the decline in net profit to higher financing costs resulting from increased investment spending.

The company said sales in its guided weapons business surged, driven by the mass production of the Cheongung-II medium-range surface-to-air missile system.

It also posted growth across key business segments, including avionics and electronic warfare (AEW), and intelligence, surveillance and reconnaissance (ISR).

LIG D&A said it is stepping up efforts to expand its global presence by opening a representative office in Peru and signing a strategic partnership with Britain's Babcock.

ejkim@yna.co.kr

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