Hanjin’s profit down 4.6% in 2006

HanjinÆs profit down 4.6% in 2006 South Korea's largest shipping company, Hanjin Shipping, saw its net income in 2006 drop 4.6 percent to 460.4 billion won ($491.5 million), which it attributed to income tax expenses from the sale of foreign terminal assets.
   Late last year, Hanjin sold 40 percent of its terminal assets, covering Taiwan, Japan and the United States, to Australia's Macquarie Bank for about $870 million.
   Hanjin's operating income in 2006 slumped 74 percent to 149.1 billion won ($159.2 million) 'due to the high fuel costs, low freight rates and the weakness in U.S. dollar.'
   Annual revenue at the Seoul-based company improved 1.2 percent to 6.05 trillion won ($6.46 billion). This modest rise was despite a 14.8 percent jump in its world container volume to 3.27 million TEUs.
   For the year ahead, Hanjin's management hopes to increase its operating income by 64.5 percent in 2007 to 245.2 billion won ($261.7 million), and see its revenue gain 5.1 percent to 6.36 trillion won ($6.79 billion).
   In 2007, Hanjin targets a container volume rise of 7.4 percent to 3.52 million TEUs and a bulk transport increase of 5.9 percent to 43.52 million tons.
   To achieve those goals, the company said it will invest $682 million over the course of the year, including new vessels of 6,500 TEUs and 10,000 TEUs, container equipment, new terminal projects such as Busan New Port, expanding its third-party logistics business, and building a more efficient information technology infrastructure.
   In a related development, Israeli tycoon Sami Ofer, who has been at the center of recent speculation over a possible takeover of Hanjin, has reportedly sold about two-thirds of his stake in the line, according to Korean news agency Yonhap.
   Ofer has a controlling interest in Haifa-based Zim Integrated Shipping Services Ltd. through the Israel Corp.