Hanjin back in the black for 2015

Hanjin Shipping, Korea’s largest container carrier, reported a net profit of $6 million in 2015 compared with a loss of $396 million in 2014 despite lower revenues.    Korean conglomerate Hanjin Shipping reported a net profit of $6 million in 2015 compared with a loss of $396 million in 2014.
   The improved earnings came despite the fact that the company reported sales of just $6.86 billion, a 15.3 percent drop from the $8.1 billion recorded in 2014. The company attributed the drop in revenues primarily to lower freight rates.
   Hanjin’s operating profit in 2015 was $41 million versus $26 million in 2014.
   The company’s container division had an operating profit of $119 million on sales of $6.3 billion in 2015 versus an operating profit of $137 million on sales of $7.4 billion in 2014.
   Hanjin said “by solidifying low-cost structure and rationalizing service lanes, the container division has managed to continue its positive operating profit since 2014.”
   The company’s bulk division remained in the red in 2015, with an operating loss of $93 million, but that was still an improvement compared with the operating loss of $154 million suffered in 2014. Bulk sales were 21 percent lower at $461 million in 2015 versus $584 million the previous year.
   “We forecast profitability improvement in upcoming quarter as transport volume is expected to rise considering recovery of the U.S. economy and seasonal influence, as well as continuous market stabilization efforts of carriers,” the company said in a statement.