Hanjin Shipping misses out on profit bonanza

Hanjin Shipping misses out on profit bonanza    Bucking the current trend for massive profits in the container shipping industry, Seoul-based Hanjin Shipping said today that "management difficulties such as the plunge of exchange rates and surge of oil prices" resulted in a 8.6 percent drop in net income during the first quarter 2005 at Won145.2 billion ($146 million). Hanjin said the drop in net income was also due to the implementation of additional corporate tax that came in effect with the introduction of the tonnage system. Operating income during the first quarter rose 4.2 percent to a record Won 168.9 billion ($169 million), compared to Won 161.1 billion in the same year earlier quarter. Revenue for the quarter was down 3 percent to Won 1.43 trillion ($1.4 billion) from Won 1.48 trillion. "Weak dollars that consist a large part of Hanjin Shipping’s income structure caused the slight decrease in revenue in spite of the rise in container transport volume," Hanjin said in a statement. During the first quarter Hanjin moved 662,320 TEUs, up 3.8 percent over the 638,133 TEUs handled in the same period 2004.