Hanjin first up with major 2010 profits
Korean liner carrier Hanjin Shipping said Friday its container division turned a $532 million operating profit in 2010, a massive swing from the $652 million the container line lost in 2009.
Hanjin's container line revenue rose 52.4 percent during the year, to $6.7 billion on a 15.1 percent increase in container volume, to 3.7 million TEUs.
The company as a whole (which includes a smaller bulk division) had operating profits of $535 million in 2010, compared to a total operating loss of $736 million in 2009, while total revenue increased 44.9 percent to $8.1 billion.
Hanjin attributed the turnaround to a major recovery of the world's economies, along with rising rates in the transpacific and Asia/Europe trades.
'These gains are merely recovering some of the larger losses of 2009: 70 percent for operating profit and some for net profit,' the line said.
Regarding its 2011 business outlook, Hanjin said it sees oversupply as the biggest challenge for the container division, 'considering the continuous uncertainty of the world's major economies and the deployment of mega-sized vessels scheduled throughout the year. We will focus on efficient fleet/service operations and innovative cost-cutting measures to enhance the profitability of all trades. We are also planning on expanding our presence in the emerging markets to secure steady profits.'
Hanjin said it expects the bulk market to stay weak due to capacity increases and the potential barriers of exporting raw materials.