Softer rates cut Hanjin’s profits by 58%

Softer rates cut Hanjin’s profits by 58%    Seoul-based Hanjin Shipping said weaker freight rates and the continued appreciation of the Korean Won against the U.S. dollar resulted in a 58 percent slump to its net profits for the first quarter to Won61.1 billion ($65 million), from Won145.2 billion in the same quarter last year.
   Operating income in the latest quarter dropped 82 percent to Won30.9 billion ($33 million), compared to Won168.9 billion in the in the first quarter 2005. Revenue was flat at Won1.43 trillion ($1.52 billion).
   Hanjin’s quarterly profit declines came despite a 15 percent rise in container volumes to 760,908 TEUs from 662,320 TEUs last year.
   “Unfavorable business conditions caused by high oil prices and increased logistic costs resulted in a reduced operating profit. We, however, expect the results for the second quarter to improve as the shipping market is likely to rally and we will continue to work closely with the CKYHS allies to boost sales competency and make efforts to save costs,” Hanjin said in a statement.