Hyundai’s first half profits up 35.9%, cautious about industry prospects
Hyundai Merchant Marine reported a net income of Won233 billion ($226.6 million), in the first half of this year, compared to Won171.4 billion in the first six months of 2004.
Revenue was down 2.5 percent to Won2.38 trillion ($2.31 billion) from Won2.45 trillion in the same period last year.
Hyundai said the net income rise was due to a 48 percent decrease in non-operating expenses to 86.2 billion won ($83.8 million), compared to 164.4 billion won in the first half 2004. Hyundai also said it cut its interest payment expenses by 42 percent.
Citing concerns over oil prices and rising shipping costs, Noh Jeong-ik, president and chief executive of Hyundai, said in a letter to shareholders: “The world’s shipping industry has enjoyed a heyday over the past few years, but there are signs that it is taking a downturn.”
“HMM has provided for ‘off season’ conditions through implementing an ‘ordinary-risk management-system,’ and all staff are primed to maximize results under any prevailing business circumstances,” he said.