Hanjin Swings to the Black
South Korea's leading shipping line Hanjin Shipping Co has swung to the black in the first quarter from a year earlier thanks to lower fuel costs and better streamlined shipping routes.
Net profit came to 22.91 billion won (US$21 million) in the January-March period, a turnaround from a loss of 224.45 billion won a year earlier, buoyed by continued cost cutting and lower bunker fuel prices.
Operating profit came to 155.03 billion won during the cited period, also switching back to the black from a loss of 66.24 billion won a year earlier. Sales inched up 0.54 percent on-year to 2.15 trillion won.
Its efforts to streamline shipping routes in container shipping also played a role in boosting earnings.
Hanjin has delivered a string of heavy losses in the last few years, but aggressive restructuring and a sharp focus on reducing costs and cutting unprofitable routes are beginning to pay off.
“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 Shipping said in a statement announcing its results.
