FOREIGN EXCHANGE LOSS PUSHES HANJIN INTO THE RED
Hanjin Shipping suffered a net financial loss of 78.3 billion won ($59 million) in 2001, as compared to a deficit of Won74.5 billion in the previous year, as it blamed a foreign exchange translation loss caused by its weaker national currency.
During 2001, the Korean won depreciated against the U.S. dollar, from 1,259.7 won at the end of 2000 to 1,326.1 won in December 2001.
“This resulted in a huge non-operating expense, a loss on foreign exchange translation, amounting to Won153 billion ($116 million),” the Korean shipping group said. If it were not for the depreciation of the Won and the foreign exchange loss, the company would have recorded a profit for 2001.
Non-consolidated revenue, which does not include the figures from sister company Senator Lines, increased by 8 percent in local currency last year, to Won4.6 trillion ($3.5 billion), from Won4.3 trillion in 2000.
Non-consolidated operating income dropped by 37 percent, to Won254 billion ($192 million), from Won401 billion.
The company decided at its annual meeting of shareholders to pay a cash dividend of 7 percent, totaling Won21.8 billion ($16 million) on ordinary shares, down from 10 percent in 1999 and 2000.
Hanjin Shipping carried 2.17 million TEUs in 2001, up 7 percent over the 2.03 million TEUs moved in 2000. Cargo in the bulk division was up 12 percent over the previous year, from 58 to 65 million tons.
“Presently, Hanjin Shipping’s consolidated financial statement including Senator Lines is not available, but transportation figures reveal Senator handled a total of 1.047 million TEU, bringing the consolidated total to 3.212 million TEU for 2001,” the company said.
Hanjin aims to increase its sales revenue this year to $3.75 billion.
“While overall market conditions do not leave the shipping industry with high expectations for a vast improvement during the coming year, Hanjin aims to achieve operating income of $237 million, and ordinary income of $107 million,” the company said.
By division, the container business is expected to account for $3.05 billion in revenue and 2.29 million TEUs in traffic, while bulk operation revenue is set at $700 million and volume expected to reach 70 million tons.