Hanjin loses US$325 million in Q2, but sees uptick next quarter

Time:2009-08-11 Browse:25 Author:RISINGSUN

SOUTH KOREA`s Hanjin Shipping lost US$325 million in the second quarter, nearly twice its first quarter loss of $191 million, despite a 2.5 per cent quarterly revenue increase to $1.29 billion, up from $1.26 billion in first quarter sales.
Second-quarter container shipping revenue continued to climb to $1.02 billion from $977 million, up 4.5 per cent from the first quarter. But deteriorating freight rates and rising costs subtracted from gains made from 22.7 per cent more boxes moved quarter to quarter.
Hanjin said it now believes that the container liner business will pick up in the next quarter, driven by the recovery in the global economy, which will also bring about freight rate recovery.
The company was also cheered by increased Chinese raw material imports and higher steel production, giving Hanjin`s bulk division reason to forecast higher volumes next quarter, despite posting a revenue decline from $289 million to $227 million after fleet reductions and falling rates.
Hanjin blamed falling transpacific rates for its operating loss of $200 million for the container liner business while the lower profitability of chartered vessels.
Added to the net loss were expenses related to the shut down its German affiliate, Senator Lines as well as negative contributions by loss-making subsidiaries, said the company statement.