Hanjin expects further increase in profit
Hanjin Shipping , having increased its operating profit 36-fold in 2003 to 432 billion Korean Won ($370 million), is expecting to boost its operating result 13 percent this year to Won 600 billion ($520 million).
“We have set our target revenue for 2004 to Won6 trillion (approximately $5.2 billion) and operating profit to Won600 billion (approximately $520 million),” Won-pyo Choi, president of Hanjin Shipping, told a meeting of shareholders.
If the target is achieved, the revenue for 2004 will be about 13 percent more than in 2003, when measured in U.S. dollars.
At the same time, Hanjin wants to reduce its high debt ratio from 449 percent in 2003 to 330 percent this year.
At the meeting, Hanjin decided that a cash dividend of 15 percent on the ordinary share would be paid up from 5 percent in 2003.
Hanjin said it would maintain its “investor-oriented management,” and “prepare itself for any possible challenge” by “optimizing corporate values through profitability and by establishing (a) sustainable business structure for future.”
Hanjin will continue to strengthen its strategic alliance with COSCO, “K” Line, Yang Ming and Senator Lines to enhance its service competitiveness, rationalize its routes and decrease costs.
In its container business, Hanjin said it would raise its long-term profitability, improve its risk management and strengthen its fleet to establish a stable business structure to prepare for the future. In the bulk business, Hanjin said it will “continue to emphasize profitability and flexibility.”
The Korean shipping company said all of its vessels will comply with the July 1 deadline of the International Ship and Port Facility Security code.