Hanjin’s operating income improves 28%
Hanjin Shipping is the latest shipping company to report improved margins, as its operating income rose 28 percent to Won254 billion ($230 million) in the third quarter, from Won199 million in the same period a year earlier.
“Continuing strength in both freight rates and demand in key service routes have contributed to Hanjin’s record-breaking third quarter results,” the company said. It added that continuous efforts in cost reduction have also helped raise profits.
Hanjin’s third-quarter revenue climbed 10 percent to Won 1.6 trillion ($1.5 billion), from Won1.5 trillion a year earlier. The Korean shipping company’s operating margin as a percentage of revenue rose to 16 percent from 14 percent a year earlier.
Hanjin said it carried about 688,000 TEUs in the latest quarter, an increase of 3 percent.
The company’s net income was Won172 billion ($156 million) in the third quarter, the same as last year. Hanjin said this was because higher operating profit was generated while gains from foreign currency translation dropped to Won5 billion ($5 million) from Won73 billion last year.
The Korean shipping company insisted that foreign currency translation items do not affect cash flow.
“When measured excluding the gain from foreign currency translation, the net profit’s actual growth shows a 68 percent rise compared to the corresponding period last year,” Hanjin said.
Container shipping companies are expected to report record profits this year as they enjoy rising rates and full ships.
P&O Nedlloyd will report its third-quarter results Thursday and CP Ships will announce its results Nov. 15. Both are likely to show improved Revenues and profits.
Hanjin’s operating income improves 28%
