Korean company returned to profitability thanks to a boost from its ocean carrier division.
South Korea’s Hanjin Shipping reported profits of 22.9 billion won ($21 million) in the first quarter of 2015, a vast improvement compared with the 224.5 billion won loss the company suffered in the first quarter of 2014.
The profit came as Hanjin’s container businesses return to profitability after recording a loss in the first quarter last year. The company also reduced losses in its bulk business.
According to the company’s most recent financial statements, Hanjin’s container business had an operating profit of 163.9 billion won in the first quarter this year compared with a 35.8 billion won operating loss in the same 2014 period. Container sales totaled 1.968 billion won in the first quarter this year, a 2.2 percent increased compared with the same period last year.
Hanjin Improved sales and operating profit in its container business in the first quarter this year despite the fact that volumes were down 0.7 percent to 1,109,899 TEUs when compared to the first quarter of 2014.
Hanjin said it achieved the results in its container business through the rationalization of its service network and a dramatic cutback of cargo variable expenses and bunker cost.
The company’s bulk division reduced its operating losses to 28.3 billion in the first quarter, a 23.7 percent smaller loss than in the first quarter of 2014.
Hanjin’s other businesses, including terminal operations, had combined operating profits of 19.4 billion won, a 190 percent increase over the 6.7 billion that division earned in the first quarter last year.
“By building all-year-round low cost structure and strengthening core capability of the company, we are concentrating all our efforts to maintain stable figures,” Hanjin said in a statement.
Hanjin turns profit in first quarter 2015
