Hanjin posts 1st-quarter loss
Seoul-based Hanjin Shipping said a drop in container freight margins, higher vessel operation costs and the continued appreciation of the Korean Won against the U.S. dollar saw it post a net loss in the first quarter of Won46.5 billion ($50.2 million), from Won61.1 billion in the same quarter last year.
Hanjin's quarterly operating income slumped 74.8 percent to Won7.8 billion ($8 million), compared to Won30.9 billion in the first quarter 2006. Revenue improved 7.3 percent to Won1.54 trillion ($1.66 billion).
Hanjin's container volumes in the period rose 22.2 percent to 929,943 TEUs, up from 760,908 TEUs after the first three months of 2006.
The Korean company said it expects to see improved results in the second quarter with freight rates 'likely to recover.' For 2007, Hanjin has set a business plan with an operating profit target of Won245.2 billion ($264.4 million) on revenue of Won6.36 trillion ($6.85 billion).
'Based on the satisfactory level of container transport volume and the gain in revenue in the first quarter, we will continue to accelerate our efforts to cut cost, and strengthen sales capability to meet the 2007 target,' a Hanjin spokesman said in a statement.
Meanwhile, J.W. Park, Hanjin's president and chief executive officer, today met officials from Hyundai Heavy Industry to sign a contract to order five 8,600-TEU containerships and two cape-sized bulk ships. The company said it would also order two Panamax bulk ships from a Japanese shipbuilder later this month.