Asia/Pacific News
Hanjin Narrowly Misses Out On Profit
Hanjin Shipping Co. Ltd., (Hanjin) [117930.KS] has reported second quarter 2012 results with total sales of KRW 2.83 trillion ($2,457 million) up 18.4% year-on-year, and an operating profit of KRW 73.8 billion ($63.3 million).
The Seoul, Korea based company narrowly missed out on a return to profit, with its net loss of KRW 1.2 billion ( $1.06 million) decreasing from the KRW 338.4 billion ( $299.8 million) loss in Q1, and from the KRW 274.0 ( $238 million) loss in Q2 2011.
According to the report, its active rate recovery efforts on the Trans-Pacific and Asia-Europe trade lanes helped the container division make an operating profit of KRW 69.4 billion ($61.5 million), pulling it out of the red for the first time since Q1 2011.
Hanjin credits the growth to a recovery in container freight rates and an increase in transported container volumes of 5.7%, with the division's sales increasing by 21.6% year-on-year to KRW 2.34 trillion ($2.1 million).
The bulk business unit reported a KRW 2.5 billion ($2.215 million) operating profit despite sales falling 6.7% to KRW 370.6 billion ($327.82 million).
It also reported a 47.5% year-on-year expansion of long-term contract business sales.
Looking ahead to its traditional peak season third quarter, the company said it it expected a rise in container transport volume and "will make every effort to maximise profitability through additional rate increase plans on main trade lanes and various cost saving programs."
"As for the bulk business, oversupply still hangs over the global bulk market," it said, adding that it would continue in its efforts to expand its long-term contract business.
